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Buying insurance for your two-wheeler upon purchase is mandatory by law in India. The insurance safeguards you from unexpected costs in case of any accidents. One of the most important things to do while buying bike insurance is to understand the aspects it would cover in case of any mishap. Being unaware of the inclusions and exclusions of the policy can lead to rejection of the claim by the insurance company.Given below are the most common reasons for which your bike insurance claim can get rejected.
- Failure to renew the policy Most policies for motorcycles are renewed yearly unless you have invested in a long-term policy for 2 or 3 years. In case the policy, against which the claim is being raised, has lapsed at the time of the accident, the claim made shall be rejected by the insurance company. Therefore, the policy must be renewed timely, before the expiry date is crossed to reap its benefits.
- Illegal usage of the bike If the two-wheeler has been in an accident while being used for criminal purposes or was ridden illegally, the policy shall not hold against it. Unlawful usage of the two-wheeler includes riding without a valid license, bike racing, and modification made to the vehicle’s body after the insurance policy is bought. The insurer can reject the claim under any of the mentioned circumstances.
- An accident caused due to drunk riding Drinking and riding is a punishable offence in India. Most accidents caused on the roads are due to riding under the influence of alcohol. No motor insurance covers accidents caused due to drunk driving. Hence your claim shall not be entertained by the insurance company in such a case.
- Claim raised post-claim submission deadline Every insurance company has a specified time for raising claims for the policy cover. The most common mistake made by several people is delaying the process of submitting the claim and missing the deadline. The process must be initiated immediately, especially in cases where an FIR is needed, as it takes time to gather evidence against the case.
- Separate policies for private and commercial vehicles There are separate insurance policies for private and commercial bikes. If your private motorcycle was being used for commercial purposes and gets into an accident, the insurance policy you bought for your private bike shall not hold against it, and the insurance claim can get rejected.
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
