Purchasing bike insurance is mandatory as per Indian laws. When buying bike insurance in India, people often research the policy coverage, benefits, and exclusions. However, what most people forget to consider is the claim settlement process of the insurer.
To put it simply, the claim process is nothing but informing your insurer in case of any accidents to avail the benefits of the insurance policy. Every year, insurance companies settle cases worth crores of rupees. You can raise a claim request on your bike insurance plan in case of accidents and theft. However, if you wish to get the desired compensation from the insurer, it is imperative to inform them about the loss/mishap immediately.
Before we dive deep into the bike insurance claim process, there are a few things you should be aware of. These include the claim settlement ratio and the types of bike insurance claims. Let us begin by understanding the claim settlement ratio.
What is the Claim Settlement Ratio?
The claim settlement ratio is the percentage of the total claims approved or settled by the insurer to the total claims received in a financial year. The Insurance Regulatory and Development Authority of India (IRDAI) mandates insurers to make their claim settlement ratio public knowledge. This ratio allows insurance-seeking individuals to determine the company’s performance and customer satisfaction levels.
The equation for the claim settlement ratio is as follows:
[Claims settled in a year / Claims received in a year] x 100
The higher the ratio, the more reliable the insurance company will be in terms of claim processing.
Type of Bike Insurance Claims
There are two types of bike insurance claims, namely:
The following table will help you understand more regarding the two claims -
If you apply for a cashless claim with your insurance provider, you are not required to pay for any damage repairs from your pocket.
If you apply for a reimbursement claim, then you have to pay for the damage incurred from your pocket. Your insurance provider later pays you back for the loss.
Your insurance providers will have its network of garages, and you will have to get your bike repaired from one of these only.
Here, the garage that you choose to repair your bike with does not necessarily have to be one of the network garages.
You do not have to pay for anything other than the deductible as your insurance provider will take care of the rest.
You are required to pay the entire repair amount along with the deductible. Later, your insurance provider will eliminate the deductible amount and reimburse the remaining cost.
Now, let us proceed to understand how you can file a claim on your bike insurance policy.
Steps to Raise Claims on Your Bike Insurance Plan
You are eligible to claim either of the following three cases:
Damage to the vehicle
Total loss of vehicle (theft or fire)
All three cases follow three simple steps. They are explained in the following table.
If your vehicle causes any damage to the third-party, contact the nearest police station immediately along with your insurance provider. In case you are the victim in the mishap, take the insurance details of the third-party involved, and inform their insurance provider.
Once your insurance provider is informed about the mishap, they will transfer the matter to the motor insurance claim committee.
The committee will then decide what amount should be paid as compensation.
Damage to the vehicle
If your vehicle incurs any damage, you are liable to inform your insurance provider as soon as possible. If you fail to report them in the specified period, your claim is likely to be rejected.
After your insurance provider is informed about the damage, they will appoint a surveyor to inspect the situation. Once the inspection is done, your insurance provider will send an approval to the garage and begin the repair work.
Your insurance provider pays the network garage or reimburses the repair expenses as per the policy terms and conditions.
Total loss of vehicle
If your vehicle is stolen or incurs a complete loss, immediately contact your insurance provider.
Submit the insurance documents with your provider. These include registration certificate, license, etc. you might be requested to surrender the original bike keys as well.
If the police are unable to locate your vehicle within the specified period, they will issue a non-traceable certificate. You will have to submit this certificate to your insurance provider who will then settle the claim depending on the policy terms and conditions.
Things to Remember When Filing a Claim
Following are a few things that you need to remember when filing an insurance claim.
1. Claim Rejections
In some instances, the insurance provider rejects the claim. Although it may sound impractical, it is still possible. Your insurance provider can deny your claim in the following cases:
Submission of incomplete or false information
If you fail to inform your insurance provider regarding the mishap during the stipulated time
You or the driver was under any influence of intoxicants during the accident
It is a second-hand vehicle, and the insurance is under the previous owner’s name
Use of vehicle for illegal activities
Get the vehicle repaired without/before informing the insurance provider
The repair cost is higher than the value of the bike
Damage is caused outside the country
Damage is deliberately caused
Use of vehicle in the area of a potential nuclear attack
Use of vehicle in a war zone
Electrical or mechanical breakdown
Use of vehicle for a purpose other than the stated one
If you forget to renew bike insurance policy
2. Claim Settlement
Generally, the claim settlement process should be smooth. So to ensure hassle-free claim process, keep in mind the following things:
Have a valid license
Don’t drink and drive
Follow the traffic regulations
Read your insurance policy paperwork carefully
Be aware of your policy coverage (inclusions and exclusions)
3. Necessary Documents
Keep the following documents handy when filing a claim:
Copy of registration certificate
Copy of police FIR
Copy of your insurance policy
Copy of your license
Original repair bills and cash receipts
Factors to Consider Before Filing a Bike Insurance Claim
Following are some factors that you need to understand before filing a bike insurance claim.
Appropriate Bike Insurance Plan
Whether or not your claim request will be approved depends on the coverage offered under your bike insurance policy. Therefore, it is imperative to understand the policy terms and conditions and exclusions before raising any claims. Also, keep the traffic safety laws in mind and be sure that you were in adherence when the mishap took place. Always carry a valid driving licence as the absence of any vehicle-related documents can lead to claim rejections. Therefore, it is essential that you are not only well-versed with the policy details but also with the motoring laws.
In case of accidental claims, ensure that you have the necessary documents to submit a successful claim. Also, include details of the witnesses, pictures of the mishap, medical/hospitalisation bills, etc. It is important to notify the nearest police station about the accident and get an FIR copy of the same. All these documents will help you raise a successful bike insurance claim.
Inform the Insurer
Along with informing the nearest police station about the mishap, it is essential to inform your insurer about the incident too. It helps you as well as the insurer to initiate the claims process. Further, in case of accidental injuries, the insurer can take care of the medical expenses. Failing to inform the insurer within the stipulated time can lead to claim rejection.
Further, let us understand how to raise claims on bike insurance in different situations.
Steps to Claim Bike Insurance During an Accident
Here’s the procedure you need to follow to raise a claim request on your bike insurance plan during an accident.
At the Accident Scene
In case of a two-wheeler accident, alert the traffic and inform the nearest police station
If any individual is injured in the mishap, call for an ambulance
Ensure that you do not give out any statement taking ownership of the accident to police, witnesses, any third-party involved, or the insurance adjusters
Take names and contact details of the third-party involved in the accident
Get a clear idea of the accident timeline. If possible, take pictures of the scene and note down any necessary information that may hold relevance later
In case the third-party involved is responsible for the accident, your insurer will work alongside their insurer for the damage expenses
If the damage expenses incurred are more than the limit mentioned in your policy, the insurer will offer you an amount (after factoring in deductibles). Consult a lawyer if you and the insurer do not seem to agree on any amount
Also, carefully review the accident report as well as the fault assessment document issued by your insurer. You can request your insurer to provide you with these details. In case you believe you are falsely held guilty for the accident, you can take an objection and request for a reassessment. If the insurer refuses to reassess your case, you may seek legal help
Getting accidental damage repaired at one of the network garages is a reliable and cost-saving choice
It eliminates the hassle involved in claim settlement as the repair expenses incurred with be reimbursed by your insurer directly
In case the damage repair cost exceeds the claim settlement cost, then you will have to bear the additional cost from your pocket
Meanwhile, some insurer also provides a replacement bike
If you happen to have incurred bodily injuries during the accident, you can avail compensation on the hospitalisation costs as well. Personal accident cover is included in the basic comprehensive two wheeler insurance plan. In case the injury is severe, you can avail additional compensation under permanent disability and more.
Settlement Agreement with Third-Party
Do not make any agreement with the third-party involved in the accident
If you happen to settle the matter through various other means, you cannot make a claim against the involve third-party
Your insurance plan will be terminated if you make any undisclosed deals related to the accident
Hence, in case of mishaps, it is recommended to file a police report. Further, inform the incident to the insurer as well. After the investigation, make a claim and wait for the results
Steps to Claim Bike Insurance During Theft
Here’s what you need to do in case your bike is stolen -
File an FIR at your nearest police station
Inform your insurer regarding the incident
Inform the RTO. It further provides you with an RTO transfer paper along with Form 28, 29, 30, and 35
Get a copy of the No Trace report of the bike from the police station. The report may take at least 30 days to be generated
Submit these documents to your insurer
After verifying the submitted documents and your claim application, the insurer will determine the Insured Declared Value (IDV) of your stolen bike. This is only in case if the vehicle is not found post 90 days from the recorded theft date
The entire process may take a few months, but you will certainly receive compensation for your stolen bike once your claim is accepted
How to Claim Scooty Insurance?
Claiming on your scooty insurance is no different. The procedures are the same as that of bike insurance. You can refer to the details explained earlier to make a successful claim on your scooty insurance.
Just like it is important to understand the features and benefits, coverage, and exclusions of a bike insurance policy at the time of purchase, it is imperative to know and understand the claim settlement process. The bike insurance plans available on Finserv MARKETS have a hassle-free claims process. You can avail the cashless claim facility at a wide range of network garages across India. Besides, you can benefit from features such as 24x7 assistance, cash-free servicing, extensive coverage, and more.