One of the first things to do once you get the bike of your dreams is to get it protected with a solid insurance policy. You can either get your bike insurance policy online or from your bike dealer. Your bike insurance policy provides you with financial help in case of any unexpected mishaps involving your bike. While the Government of India has mandated the use of third-party liability insurance, you can also get comprehensive insurance to provide your vehicle with the ultimate protection. The policy does not just protect you from liabilities, but also from your own damage. Though the aim of insurers is to protect the insured and the insured vehicle at all costs, there are certain situations where the insurer holds the authority to reject your claims. Let us take a look at the major reasons why your insurance company rejects your bike insurance claims.
Here are the reasons why your bike insurance claims get rejected
While insurers in India are far more lenient in terms of their claims approval when compared to other countries, there are some situations where the insurers can reject your claims. Some of the top reasons for the same are listed below.
1. Possession of an Invalid or Inactive Policy:
One of the golden rules of bike insurance policies is to get your policy renewed on time. This will not only keep you and your bike protected, but also keep your accumulated benefits intact and help you maintain a good track record. Though insurers provide the policyholders with a grace period of 90 years to renew their policy after it expires, the same does not hold good for claim settlements. You are allowed to make a claim only when the policy is active.
2. Making Fraudulent or Wrong Claims:
While the financial assistance that comes with insurance policies is a great boon, there are some people who abuse the same by making false claims. This could lead to severe legal punishment and the termination of your bike insurance policy. Also, there are situations where the insured makes a claim for the damages suffered by their own bike when they have only third-party insurance. Such claims will also get rejected by the insurance company.
3. Usage of the Bike for Illegal Reasons:
While the coverage of the insurance policies is fairly exhaustive, there are certain limitations where the insurer will not provide any assistance to the insured. One of the major situations is when the bike or the insured suffers a loss or damage due to their participation in any illegal activity. It could either be either illegal racing, smuggling, or driving the bike under the influence, or driving without a valid license and insurance policy.
4. Using the Bike for Commercial Purposes:
At the policy purchase, your insurer will ask you if your bike will be used for private or commercial purposes. Once you have stated the purpose of use, a policy appropriate for the same will be issued. However, if you are found to be using your private vehicle for commercial purposes and vice-versa, your policy can be terminated. Further, any claims made for the same will be rejected.
5. Delays in Communication:
One of the key factors in any relationship is proper communication. The same goes for the insured-insurer relationship. The insured is expected to contact the insurer immediately, in case of any mishap or modifications made to the bike. Further, they are also expected to make the claim during the stipulated period. Failing to do so can result in the claims being rejected.
We hope the article will help you make informed and better decisions in terms of handling your bike insurance policy.