Bike Insurance is very important since all vehicles must have at least Third-Party Bike insurance in India. As per the Motor Vehicle’s Act 1988, if vehicles do not have insurance, the vehicle owner would have to pay huge penalties. Policyholders can seek financial aid from insurance companies and according to the insurance policy and the premium paid, the insurance claim would be provided. When an unfortunate event occurs, the policyholder would have to raise a claim using the company’s established documents/forms and processes.
There is always a worry on whether a claim will be accepted or rejected.
Read further to understand what can go wrong with reimbursement claims:
Types of Bike Insurance Claims
There are mainly two types of bike insurance claim methods:
1. Cashless Bike Insurance Claim
Insurance companies have tie-ups with hospitals and garages, and they are called “network hospitals” or “network garages”. If a policyholder meets with an accident and they choose a network garage to get their bike repaired, the insurance company will directly deal with the garage and settle the bill. Most insurers have a vast network of authorised service centres and one can easily find them on the official website of the insurance company
2. Reimbursement Bike Insurance Claim
This is a more traditional way of dealing with insurance claim settlements. In this method, the policyholder will have to pay for the repairs from their pocket, collect all bills and necessary documents and then reimburse the money from the insurance company. This claim method requires a lot of paperwork and insurance companies have higher chances of rejecting the claim.
5 Things That Can Go Wrong with Reimbursement Claims
Rejection Due to Expired Insurance Policy or Non-Coverage
At times policyholders may not realise that their insurance policy has expired. If a person does not have a valid insurance policy, there are chances that the insurance claim can be rejected. Another reason for claim rejection can be non-coverage of some kind. For instance, if the policy covers damages caused due to fire, accidents, theft and does not cover damages caused to the engine, the insurance company will not cover the loss
Partial Claim Settlement
The insurance policy may not cover the entire damage caused to the vehicle. The policyholder might have to suffer a major loss and the insurance company may only pay a partial amount. Thus, it is very crucial to go through the exclusions mentioned in the policy
Rejection Due to Delay
Insurance companies expect quick action. One must immediately inform the insurance company about an accident or theft and not wait. Especially in cases where one requires a First Information Report (FIR), one must act fast. If insurance companies find any delay, they might reject the claim
Rejection of Claim Due to Insufficient Documentation
Policyholders are expected to have the Registration Certificate (RC) of the bike, Driving Licence, insurance policy, FIR copy, bills, etc. These are essential to verify if the case is legitimate. If one either enters wrong information or fail to submit the right documents, their claim might get rejected
Delay in Claim Settlement Due to Lengthy Process
Some insurance companies follow a lengthy and tedious claim settlement process. The process may involve having to fill several forms, submitting several documents and bills, etc. This can lead to unavoidable delays thus, before buying an insurance policy, choose an insurance company that has a fast claim settlement process
As important as bike insurance may be, there are many complications that one may face while processing a claim settlement. Thus, it is very important to read reviews and choose the right insurance company who are reputed for being fair and consistent in their claim’s payment. Check this track record of the insurer before you decide to buy a plan. To know more about bike insurance, click here!