It is not uncommon for a two wheeler insurance company to deny claims. There are obligations and stipulations that must be fulfilled by the policyholder so that there are no concerns when filing for claims. Following are the main reasons as to why an insurance company could reject your two wheeler insurance claim.
Misrepresentation of Facts
The most common reason why a two wheeler insurance company rejects claims in misrepresentation of facts. The insurer must have up-to-date insurance regarding the policyholder and the vehicle insured. If the company is not informed about all the details regarding the accident, the vehicle and the rider, it could reject your insurance claim. Moreover, policy rates may also change as a result of this, making it instrumental to keep your insurer updated about everything they need to know.
Fraudulent / False Claims
Although the aim of an insurance policy is to offer financial protection to the policyholder in times of trouble, many are known to use them to make profits. Insurance companies are rejecting an increasing number of claims from individuals who provide false information in order to gain more coverage than they require. In case the company finds anything awry, it will investigate the claim to confirm its authenticity. If an individual is found guilty of providing false information or making a fraudulent claim to get more money, not only will their claim be denied, but such an individual will also be liable for serious legal action. Fraudulent applications have the potential to put a black mark on your record, thereby making it very difficult for you to purchase a policy in the future.
When making an insurance claim following a two wheeler accident, it is essential to ensure that you have not committed any unlawful acts as your claim could backfire. In case the rider was found guilty of drunken driving, riding without a valid license, or stunt driving, etc., the policy will be terminated immediately. Even if the vehicle was not being used by the policyholder, but the rider had the permission of the policyholder, the policyholder will be held liable.
There are several instances wherein claims are filed by individuals who haven’t checked their policy document to confirm whether or not their policy covers their claim particulars. If you have a comprehensive two wheeler insurance policy along with add-on covers, the insurance company will cover majority of the costs. However, if you have not purchased these add-ons, there is a good chance that certain costs will have to be borne by the policyholder himself. Make sure you read the fine print and gain a thorough understanding of what is covered by your policy and what is excluded before filing a claim.
It is quite common for an owner of a two wheeler to lend their vehicle to a friend. In case you lend your two wheeler to someone else, make sure that they possess a valid driving license as insurance companies do not entertain claims if the rider of the vehicle does not have a license. Since you are allowed to nominate other riders when taking out a two wheeler insurance policy, your claim will be accepted if the rider of the vehicle was a nominee who has a valid license. However, some policies only provide coverage to the regular drivers, while some offer coverage to any licensed driver or named driver. Make sure that your policy covers other drivers before filing a claim.
Faulty Vehicle / Parts
If your two wheeler is not in good condition and has issues such as loose brakes or faulty tyres, the insurance company can reject your claim. It is essential to ensure that your vehicle is in perfect working condition at all times so that claim settlement becomes a less tedious affair. It is also important to install security devices so that claims relating to theft can be investigated with relative ease. Make sure that your vehicle is serviced regularly as insurance companies are known to reject claims citing that the insured vehicle was not serviced as per the service intervals specified by the manufacturer.
These are some of the circumstances under which an insurance company can reject your two wheeler insurance claim. Make sure you read through your policy document carefully and ensure that you have adhered to all the regulations before filing a claim.