Can Engine Capacity of Bike Cause Accident Claim Denial

A Ludhiana based person died in a road accident in 2020. The accidental death claim made by the family members of the deceased individual was rejected by HDFC ERGO. The claim was denied because the engine capacity of the two-wheeler he was riding was more than the engine capacity stipulated under the insurance policy.

When the letter was posted on Twitter, it drew attention to the situation. The letter mentioned in the tweet stated that the insured died because of a head injury on 19 April 2020. The bike he was riding had an engine capacity of 346 cc that surpasses the specified engine capacity and comes under the general exclusion clause 8 according to the insurer’s terms and conditions. As per the policy, any claim will be denied if an insured suffers injuries or dies while riding a two-wheeler with an engine capacity above 150 cc.

HDFC ERGO’s official Twitter account was not tagged in the tweet. The insurer, in its response to LiveMint, stated that the issue being discussed on social media is an old one and further added that the family members of the insured have already received the claim payment. HDFC ERGO also said that it removed the particular exclusion from all of its policies in October 2020. Furthermore, the insurer stated that its new and existing policyholders will be covered for personal accidents irrespective of the two-wheeler's engine capacity.

Indraneel Chatterjee, the co-founder of RenewBuy, suggested that individuals must understand the clauses and benefits of an insurance plan before buying it. He added that often, customers are eager to learn about the benefits of an insurance cover but they skip over the exclusions.

From the incident stated above, it is clear that before buying an insurance plan, you must understand its terms and conditions. This will also be helpful when you are renewing your insurance plan. You can opt for Saral Suraksha Bima, an insurance policy issued by the Insurance Regulatory and Development Authority of India (IRDAI) to avoid discrepancies.

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