Why Your Two-wheeler Insurance Claims Get Rejected?

Many bike owners buy a comprehensive two-wheeler insurance plan to protect their bikes from the various risk associated. By having an insurance policy, they feel protected because they can raise a two-wheeler insurance claim for compensating their losses. However, many a time, their two-wheeler insurance claims may get rejected due to several reasons. To avoid such a situation, we have discussed some of the common reasons for insurance claim rejection. Read on.

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11 Common Reasons for Rejection of Two-wheeler Insurance Claims

Two-wheeler insurance claims rejection is one of the common disappointments for bike owners. Certain conditions and obligations must be fulfilled by the policyholders to get compensated for the raised claims. Below we have mentioned some of the main reasons for the two-wheeler insurance claims rejection.

  • Policy Expiration

Your insurance company will not accept your insurance claim request that was raised against an expired or lapsed insurance policy. Your insurer covers your vehicle only during the policy tenure.
In case you forget to renew your policy before the due date of expiry, you become ineligible to get coverage. Thus, it is advised to renew your insurance policy before the expiry date to avail uninterrupted coverage and smooth claim settlement.

  • Misrepresentation of Information

When you buy an insurance policy, make sure you provide accurate and true information about yourself and your vehicle to your insurer. Also, be transparent with your insurer while providing information regarding your accident without missing any facts to receive compensation for the losses or damages.

In case you misrepresent or miss out on any details of the accident, it will lead to claim rejection. Also, we suggest you take photographs of the damaged two-wheeler that you can send your insurer online and enjoy a hassle-free claim settlement process.

  • No Claim Coverage

When policyholders buy mandated third-party two-wheeler insurance policies, they do not get covered for 'Own Damage’ under it. According to policy terms and conditions, your claims will be rejected in such scenarios. Also, if an insured person holds a comprehensive plan but without any add-on covers, then there can be some expenses that are borne from their pocket. So, the insurance claims depend upon the coverage, and your claims get rejected for uncovered items.

  • Fraudulent Claims

An insurance policy aims to assist the policyholder in times of trouble, but some policyholders seek opportunities by raising false claimto make a profit. That is why insurance companies reject claims from individuals who are involved in fraudulent activities to gain more coverage than required.

Since the fraudulent claims are rising, insurance companies have become more cautious and conduct thorough research to verify the claims raised by the policyholders. However, if you are caught in any fraudulent activity to gain profit, it will be rejected, and you will be blacklisted. Hence, you will face difficulty in purchasing a new policy in the future. Even in some cases, you might even have to face legal charges.

  • Unlawful Acts

While raising any two-wheeler insurance claim, it is essential to ensure that you are not involved in any unlawful activities. Such unlawful acts include drunken driving, riding without a driving license, reckless driving, etc. If you are ever involved in any such activities, your insurance company will reject a claim associated with any of them.

  • Modifications in Bike

Many bike enthusiasts choose to modify their bikes without even knowing the consequences. If you are one of those people, we suggest you inform your insurer once before going for modification. The reason being certain types of modifications increases your insurance premium. Therefore, your claims get rejected for a modified bike, considering those modifications were not disclosed with your insurer before.

  • Commercialization

When you are using your personal bike for commercial purposes and it gets damaged in an accident, your insurance provider will reject the claim request at that very moment. There are separate policies available for commercial vehicles. Therefore, any private bike must not be used for any commercial purposes.

  • Delay in Raising Claim Request

We advise you to raise a claim request as early as possible after the mishap. Suppose you request the claim after one month of the accident your insurance company will reject your claim request. That is why every insurance company has a deadline to initiate claims and that has to be done within that dedicated period to enjoy a hassle-free settlement process.

  • Transferring Ownership

If you have a second-hand two-wheeler, make sure that your two-wheeler’s insurance policy is transferred from the last owner to your name as soon as possible. In case you forget to do it, there will be no policy in your name. Ultimately, you cannot get any compensation for the losses.

  • Faulty Bike

If your bike is not in good condition and facing issues like inflated tyres, faulty brakes, leaking fuel tank, or overheating engine, the insurer can reject your claim. After all, these small mistakes can lead to huge damages, and the claim settlement process becomes a little hard. Therefore, make sure your bike is serviced regularly and is in good condition because insurance companies consider these faults while rejecting your two-wheeler insurance claim.

  • Illegal Riding

Your insurer never compensates for the claims if your bike is damaged for illegal riding like- driving in a restricted area or footpath, racing or overspeeding, etc. Therefore, never involve yourself in any illegal purposes when riding a bike.

Summing It Up

Having an online two-wheeler insurance policy is mandated if you own a bike or any other two-wheeler to get compensated for the expenses caused due to an accident or any mishap. But make sure that your online two-wheeler insurance claim never gets rejected and you get accurate compensation for the damages incurred. Also, do not forget to read your policy documents carefully and keep the required things handy before raising your two-wheeler insurance claim.

Written By: PolicyBazaar - Updated: 09 March 2022
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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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