Monday January 21, 2019
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How to Prevent Rejection of Your Two-Wheeler Insurance Claims?

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By NewsGram StaffWriter

The thought of the wind swirling in your hair as you sweep your new bike in the streets is the stuff of fantasies. Riding high on your two-wheeler might be your passion; however, with that speed and thrill, there is a responsibility to protect yourself and your vehicle also. Here comes a two-wheeler insurance policy that insures your vehicle against any perceived damage.

However, most of us buy a two-wheeler insurance policy without knowing what it entails. God forbid, if any damage happens to your vehicle, are you sure that the insurer will settle your claim? There are various reasons on the basis of which an insurer can repudiate your two-wheeler insurance claims. Let’s have a look at some of the reasons of claim rejection and necessary steps to prevent them:

  1. Repairing the vehicle without informing the insurer: Many vehicle owners get their damaged vehicle repaired after an accident and then approach their insurer for reimbursements. As insurance companies find it difficult to validate losses, they reject claims of such policyholders.

Solution: You should first inform the insurer so that their authorized person can come to inspect your vehicle and estimate the extent of loss.

  1. Undeclared modifications to the vehicle: If you have done modifications to your vehicle but haven’t covered it while buying the policy, your insurer can reject your claim application even if losses occur due to some reasons.

Solution: Your insurer needs to be updated about any modification you or the previous owner has made to the vehicle, in case of a second-hand vehicle. Be it engine related or an added accessory, all changes made to the vehicle that alter it from its factory standard must be properly declared, else your claim can be rejected by the insurer.

  1. Non-disclosure of material facts: If there is a non-disclosure of material facts or misrepresentation at the time of filing for a claim, it amounts to a breach of the duty of utmost good faith. As a result, the insurer can reject your claim as if it never existed.

Solution: It is imperative for policyholders to understand that the insurance contract is guided by underwriting principles which are based on the information given by them. Therefore, stating all things correctly in a policy document is crucial.

  1. Losses not covered under the policy: There are certain perils, such as mechanical breakdown, consequential loss, and damages due to nuclear weapons or wars, which are not covered. If a claim is filed in respect of such losses, the insurer can reject your application.

Solution: Read all policy documents carefully and understand them well. In case of a doubt, seek clarification from the insurer.

  1. Drunken driving: The insurer can reject your claim if the accident happened when the driver was under the influence of drugs or alcohol. The insurer can reject your claim on this ground and no court will hear your case.

Solution: Driving requires your full attention and drinking causes hindrance. So stay away from alcohol or drugs while driving.

  1. Invalid driving license: Driving license is valid for a considerable period of time and after that you need to renew it. However, if the accident happened when you or someone else was driving your vehicle without a valid driving license, your two-wheeler insurance policy claim will be rejected.

Solution: Mr. Nitin Gadkari, India’s transport minister, had revealed that almost one-third of driving licenses in India are invalid. Meanwhile, whatever the corruption and malpractices prevalent in issuing driving license in India, it is in the best interest of people to get a valid license.

  1. No transfer of ownership: Remember, the insurance policy is bought in the owner’s name and not in the vehicle’s and hence this transfer of name is an important parameter to consider after you purchase your second-hand vehicle. In case where transfer formalities have not been done, the policy becomes null and void.

Solution: At the time of buying a second-hand vehicle, make sure to transfer your name in the policy copy.

  1. Usage: A personal vehicle can’t be used for commercial purposes. Your claim will be rejected if losses happened due to use of a personal vehicle for commercial purposes or for any other illegal activity.

Solution: Never use your vehicle for some other purpose. Also, do not lend your vehicle to any other person without knowing the actual purpose.

Conclusion

Your two-wheeler insurance policy is a smart investment that can save you from unaccounted expenses. However, merely buying the policy is no guarantee that the insurance company will pay for all losses and damages. Therefore, be true, instead of being reckless and take all necessary steps to avoid rejection of your claims.

 

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How to Choose the Right Car Insurance Policy

Various aids like car insurance premium calculator and 24/7 assistance for Bajaj Allianz Car Insurance renewal, helps you to choose the right car insurance policy.  

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Tesla, car insurance
A sales staff chats with a customer at a Tesla store near a poster announcing orders of the Model 3 electric cars in Beijing, China, Monday, Jan. 7, 2019. VOA

Buying a new car is always an event in a family or an individual. The joy of purchasing a car should be accentuated with a matching car insurance policy. Apart from the customary “Nimbu-Mirchi-Totka” to safeguard from an evil eye that is a ritual with any new purchase in India. It lifts the spirit, but on the ground, as you drive your favourite car on the road, you are mandated to protect yourself from the vagaries of unforeseen events. The Motor Vehicles Act, 1988 has made Third-Party Insurance compulsory for all motor vehicles on the road in India.

The need for car insurance:

The practice in India is that your car dealer includes the insurance policy in the purchase package of your new car. Though he acts as the facilitator, it is in your interest to be aware of the nuances that go into car insurance to protect you from financial losses in case of an accident. The car insurance not only covers for third-party losses but also for own damage.

Car Insurance
Directly dealing with the insurer secures you a lower premium on several features including savings on overheads that is passed on to you. Flickr

Types of car insurance:

There are broadly two types of car insurance:

  1. Third Party: This insurance policy is compulsory and compensates the victim from losses incurred on collision with your car.
  2. Comprehensive: In addition to the third party, it protects you from own damage due to the collision, personal loss and other damages by both acts of man and god.

Add-on covers:

These are necessary to enhance coverage of your car insurance. Some of the add-ons are enumerated below.

  • Zero depreciation: Covers replacement of plastic and other eligible parts ignoring the depreciation with age of the car.
  • Engine cover: For the protection of the engine from damages due to extraneous factors like flooding.
  • NCB: To continue with the year to year discounts for NCB in spite of claims in the previous year.
  • Invoice Cover: The compensation is to the tune of on-road price or full IDV in case of theft or total damage.
  • Key and lock replacement: Covers for loss due to loss of the key.
  • Round the clock roadside assistance.
  • Consumables: Covers for consumable items in the car.
  • Personal effects: Loss of personal baggage in the car.
Car Insurance
Computation of IDV is important. Lower IDV will reduce the premium, but will also impact by lesser compensation. Flickr

Inclusions in car insurance:

  • Own car damage in accidents.
  • Personal cover for death or disability due to accidents.
  • Cover for loss in natural disasters.
  • Cover up to IDV for theft.
  • Cover against human-made acts like fire, vandalism etc.

Exclusions in car insurance cover:

  • Damage caused while driving under the influence of alcohol or drug.
  • Driving without a valid license.
  • Damage suffered during involvement in illegal acts.
  • Damage out of war or nuclear risks.
  • Damage due to normal wear and tear.

Car Insurance Premium Calculator:

When opting for a preferred comprehensive insurance policy, the fundamental components that determine your premium by the car insurance premium calculator are:

  • Third party cover.
  • Own damage cover: It may vary depending on the follows.
  • IDV (Ex-Showroom price plus depreciation)
  • The capacity of the engine
  • Location of the RTO where registered.
  • Personal accident owner-driver cover.
  • Add-ons: This is variable depending on the choice.
  • GST at 18% presently.
Waymo, driverless cars, car insurance
New car buyers will compulsorily have to subscribe to third party liability cover for 3 or 5 years.

Long-term Car Insurance Policy:

IRDAI has prodded insurers to issue long duration policies for vehicles from 1st September 2018, consequent to the directive of the Supreme Court. Thus new car buyers will compulsorily have to subscribe to third party liability cover for 3 or 5 years. While these increase the cost of policy due to the upfront payment, in the long run, it works out to be economical. However, on the flip side, you lose out on annual discounts based on NCB.

Claim settlement ratio:

While buying a car insurance policy, you need to factor in the claim settlement ratio of the general insurance companies. Of the major insurers, Bajaj Allianz Car Insurance Renewal makes sense as they have consistently been in the top bracket with good claim settlement ratio.

Ways to reduce car insurance premium:

Even while you chose your policy meeting your needs, some factors may still impact the amount of premium. The various ways to lessen the premium are:

Car, insurance
Buying online insurance in UAE entitle the insurance buyer to avail exclusive offers and discounts. Pixabay
  • IDV: Computation of IDV is important. Lower IDV will reduce the premium, but will also impact by lesser compensation.
  • NCB: This factor can benefit you with up to 50% discount.
  • Security devices: Installation of ARAI approved devices like anti-theft can fetch you up to 2.5% discount.
  • AAI: AAI membership fetches you a discount on Own Damage component of premium.

Online purchase of Car Insurance:

Among the many options, the best option is to buy or renew your premium online. Let us see how it benefits:

Also Read: Insurance in 10 Years Time: What Will the Industry Look Like

  • Convenience: User-friendly portals make purchase easy from the comfort of your home at any time of the day.
  • Comparison: Multiple plans and quotes can be obtained to land the best deal.
  • Discounts: Directly dealing with the insurer secures you a lower premium on several features including savings on overheads that is passed on to you.
  • Assistance: Online assistance is just a click away.

Bottom Line:

Now that you are aware of all the nitty-gritty of car insurance, you are in a position to arrive at an informed decision. Various aids like car insurance premium calculator and 24/7 assistance for Bajaj Allianz Car Insurance renewal, helps you to choose the right car insurance policy.