Monday June 18, 2018
Home India How to Preven...

How to Prevent Rejection of Your Two-Wheeler Insurance Claims?

0
//
399
Photo: www.business-standard.com
Republish
Reprint

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.

 

Click here for reuse options!
Copyright 2016 NewsGram

Next Story

How to File Car Insurance Claim in Case of Theft?

It is a comprehensive cover for personal accidents, natural and man-made damage caused to the vehicle. Filing a vehicle insurance claim after the theft of an automobile is not the same as filing the claim for any other reason.

0
Filing a vehicle insurance claim after the theft of an automobile is not the same as filing the claim for any other reason.
Representational Image, Pixabay

You buy your dream car to travel every part of the country with luxury. How would you react on discovering that your car is missing? Someone stole your car. This is when your motorcar insurance comes into the picture. It is a comprehensive cover for personal accidents, natural and man-made damage caused to the vehicle. Filing a vehicle insurance claim after the theft of an automobile is not the same as filing the claim for any other reason. Theft is the total loss of value of the automobile and is equal to the complete destruction of the car in an accident that causes it to be written off as scrap. Car theft in India is widespread and some instances happen daily. Every day, 105 cars were stolen in the year 2016-17 (Ref: Indpaedia). To make a claim with motor insurance companies in India, your vehicle needs to be covered under the comprehensive insurance policy which includes third party cover, a loss or damage to the vehicle, accident, theft, and risks against natural calamities.

Here is how you can file a car insurance claim in case of theft

FIR – The insured must lodge the First Information Report (FIR) immediately. It is an official proof of the fact that the car has been stolen. It is the first and an important step to file your claim. Without this, you cannot claim your insurance. The car insurance cover requires the owner to take all the responsible steps to recover the loss due to the lost vehicle.

Theft is the total loss of value of the automobile and is equal to the complete destruction of the car in an accident that causes it to be written off as scrap.
Representational Image, Pixabay

Informing the Regional Transport Office – One should notify the RTO about the theft of the vehicle. It will ensure that the thief does not transfer the vehicle to his or her name. One should inform the RTO in writing and submit the acknowledgement to the car insurance company. A copy of the RC book with a stolen endorsement must be obtained from the RTO. It should be submitted to the insurer.

Submit original car documents – To file a claim, the car owner should submit the original vehicle insurance policy document, tax invoices for the last year and other documents of the car.

Acknowledgement from car loan provider – If your car loan is not yet repaid, then you are bound to inform the lender and obtain a response from them. You should also submit the latest loan statements to indicate the total amount due.

Claim Form – Call the customer service centre of the insurance company and fill the claim form by giving all the necessary information which includes policy number, vehicle details, time and description of the incident. You will be required to submit the duly signed claim form, copies of the Registration Certificate (RC) of the vehicle, policy document and driving license.

Closure report – The police will try to investigate the loss and try to recover the car and submit their report stating that the vehicle could not be found. The court will close the case after this and a No Trace certificate will be submitted to the insurance company. The payout will be made only after the document is submitted.

Also Read: Apple Bullish on Indian Market With $61.1bn in Revenue 

Other documents – Your identity proof and a copy of your driving license should be submitted to the insurance company. Additionally, you will be required to provide an NOC for transfer of the vehicle to the insurance company along with a letter of indemnity on a stamp paper. You will have to transfer the RC of the stolen vehicle in favour of the company, hand over all sets of keys and give a letter of subrogation to the insurance company. Finally, you hand the documents over to the insurance company and claim.

Every insurance company follows the steps mentioned above for the acceptance and reimbursement of the claim. However, it is crucial for the vehicle owner to take immediate action and report the theft to the authorities. Motor Insurance companies in India offer quick processing and approval of the claim if you have purchased comprehensive motor insurance. It is important to note that in case the vehicle is taken on a loan, the insurer will have to reimburse the payout amount to the financier, and if there is any excess amount, it will be borne by the insured.