Reasons Why Bike Insurance Claims Get Rejected
With the Government of India mandating the possession of at least a basic bike insurance policy for all bike riders, it has become a hot commodity in the market. It ensures both the safety of your bike, any third-party involved, and most importantly, you. Though policies and claims in India get approved easily, there are certain circumstances where your claims could get rejected. Rejections of claims typically happen due to the violation of any terms and conditions of the policy. It is therefore important that you read the policy documents thoroughly and get your doubts clarified before you sign the policy papers.
Here are 5 common reasons why bike insurance claims could get rejected.
1. Possession of an Invalid or Expired Policy:
Generally, bike owners are expected to renew their policies annually, unless they have invested in a long-term policy. However, failing to do so and making a claim for an accident that occurred during the policy lapse period can get your claims rejected. So, renew your policy on time to avoid such claim rejections.
2. Usage of the Bike for Illegal Activities:
Your insurance policies are in adherence with all the rules and norms of the governmental policies. Your insurer expects the same of you to follow the government rules. If you are found to be using your bike for any illegal activities like racing, drug peddling, etc., or driving without a valid license and insurance policy and have been in an accident, your insurer will not come to your rescue.
3. Accidents Caused under the Influence:
Riding your bike while under the influence of alcohol or any other intoxicating substance is not just a threat to your safety, but also a punishable offence. A collaborative study has reported that around 19 Indians die every day due to drunk driving. To help combat this, both the bars and some of the people’s welfare organizations have made help available for transit when you are under the influence. So, suffice to say, any claims made while under the influence will be rejected.
4. Claims Raised Post Submission Deadline:
When any disaster strikes, especially where your bike is concerned, your insurer should be the first person you should contact. They will help you combat the situation with the right resources and also pay for you, based on your policy terms. You are also expected to submit your claim within the specified timeframe. Failing to do so can result in claim rejection.
5. Wrong Policy Type:
When you are driving a bike, it is important to get an insurance policy based on the type of your usage – private or commercial. Possessing private insurance and using your bike for commercial purposes is illegal. Also, if you get into an accident while you are at it, your policy claims will not be entertained.