Bike Insurance Claim Settlement - Step-by-Step Guide

Bike Insurance Claim Settlement

If you have bike insurance and your bike is met with an accident, you can claim compensation from the insurer. This claim will be registered, processed and settled by the insurance company after a few processes. This whole procedure is called bike insurance claim settlement. While buying two-wheeler insurance in India, you should thoroughly check the insurance coverage, benefits, exclusions, claim process, and the claim settlement ratio of the insurance provider.

The bike insurance claim process is the process of informing your insurance company about the incident, to claim the compensation or benefits of the bike insurance policy. However, it is important to inform the insurer about the damage or loss immediately to receive the compensation on time.

Type of Claim Settlement

You can raise two types of bike accident insurance claims. They are:

1. Cashless Bike Insurance Claim - 

Your insurer will have a wide network of garages associated with them from where you can get your two-wheeler repaired. Such claims are cashless. Due to this facility, you don’t have to pay for the servicing charges. Your insurer will settle the final bill with the authorised garage. But, the voluntary and mandatory deductible chosen at the time of policy purchase must be paid.

2. Reimbursement Bike Insurance Claim -

 In certain cases, you may choose a specific garage that is not associated with your insurance provider. At that time, you can choose reimbursement claims. You have to settle the final bill with the garage by yourself. Later, you can raise a claim with your insurer by submitting the necessary receipts and invoices. Once the insurer reviews the documents, they will reimburse the claim amount after deducting the compulsory and voluntary deductible.

Documents Required For The Bike Insurance Claim

Here are a few documents as per the scenario that you must show while making a claim for your comprehensive two-wheeler insurance policy:

• Incase of Accidental Damages

Here are a few documents required for making a claim for the accidental damages under your two-wheeler bike insurance policy:

1. Valid two-wheeler insurance policy

2. Copy of your tax receipt, registration book (you must show the original copy for the verification process)

3. Copy of the police FIR

4. Driver’s licence at the time of the accident

5. Estimate amount of total repair done by the network garage

6. Original payment receipt, repair invoice (it must be noted that the repair invoice is mandatory to be shown only in cases of network garages)

7. Discharge Cum Satisfaction Voucher issued by the garage and signed by you along with a stamp of revenue

• In Case of Two-wheeler Theft Claims

Here are a few mandatory documents which you must show in order to receive the compensation for your two-wheeler theft claims:

1. Claim forms which has been duly filed

2. Original registration certificate of the vehicle

3. Original insurance policy document

4. Prior insurance policy related details (if any): issuing company, policy tenure, policy number, and more

5. Set of warranty card/keys/service booklet

6. Original police FIR with a mention of the theft

7. Letter of subrogation

8. Copy of the acknowledgement letter which has been written to the RTO with an intimation about the theft and claim the vehicle as ‘Non-USE’

9. Forms 28, 29, and 30 which have been signed duly by the policyholder

10. Form 35 which has been duly signed by the lender in case the two-wheeler was purchased on a loan

11. Consent from the financier and you on the agreed terms, conditions, and amount, which have to be settled by the insurance provider

12. NOC from the lender in case the claim amount has to be paid by you

13. Updated and blank ‘Vakalatnama’ (depending on the insurance provider)

14. Claim Discharge Voucher which has been signed duly across a Revenue Stamp

It must be noted that the insurance provider may seek for the additional documents also.

• In Case of Third Party Claims

Here are a few mandatory list of documents that are required to settle the third party claims:

1. Copy of the police FIR

2. Original insurance policy document

3. Duly signed claims’ form

4. Copy of the driver’s licence

5. Copy of the vehicle’s registration certificate

Note: In case of the commercial two-wheelers, a stamp must be submitted with the original documents.

Two Wheeler Insurance Claim Settlement Ratio for FY 2023-24

To understand the probability of your two-wheeler insurance claim getting settled in the future, you should be aware of the insurance company’s Claim Settlement Ratio (CSR). This is the ratio of total claims the insurance company has settled to the total claims they received in a financial year.

If they have a high CSR, they will release the compensation quickly when you raise a claim request on your comprehensive bike insurance plan in case of accidents, third-party liabilities and theft. Any claim ratio between 85% and 99% is considered good. Here is a list of the two-wheeler insurance claim settlement ratios of top insurance companies for FY 2023-24:

CSR of the Other Insurers for FY 2023-23

Steps to File A Bike Insurance Claim

Carefully read and understand the bike insurance claim rules before claiming compensation. The steps for filing cashless and reimbursement bike insurance claims are different. Follow the below-mentioned steps to raise a claim.

Here is a list of all the documents required to file a two-wheeler insurance claim:

• Duly signed and filled claim settlement form

• Two-wheeler insurance policy copy

• Copy of Driver's Licence and Registration Certificate of your bike

• FIR copy in case of a major accident or theft

• Original tax receipt

• Original invoice of repair for cashless claim

• All original invoices and payment slips in case of reimbursement claim

How to File Cashless Claims

1. Reporting - Intimate your insurer about the claim at the earliest to ensure an easy procedure. You can use their toll-free number or visit their website. Register your claim and save the reference number given for future use.

2. Assessment - The insurance company will assign a surveyor to assess the damage incurred to your bike. The assessor will submit a report after the damage evaluation.

3. Servicing - Once your claim is assessed and approved, your bike will be towed to the nearest authorised garage for repair. After service, you can pick up your serviced bike from the network garage.

4. Cashless Claim Settlement - All the necessary documents and the claim settlement form should be submitted to your insurer for processing the claim. Your bill will be directly settled with the garage after you pay for the required deductibles since you opted for cashless claim settlement.

 How to File Reimbursement Claims

1. Reporting - Intimate your insurer about the claim at the earliest if you want to claim insurance for the bike. You can use their toll-free number or visit their website. Register your claim and save the reference number given for future use.

2. Servicing - Tow your bike to the nearest garage of your choice and evaluate the loss incurred. Get the bike repaired there and pick it up whenever it is ready. Pay the final bills by yourself and maintain the original bills, receipts and inspection report to initiate an insurance claim.

3. Reimbursement Claim Settlement - All the necessary documents, the claim settlement form, original bills and invoices should be submitted to your insurer for processing the claim. Once the claim is reviewed, the insurer will release the compensation. After subtracting the deductibles, the claim amount will be reimbursed.

Common Reasons for Claim Rejections

You may find the two-wheeler accident insurance claim procedure a little complicated and if you raise a claim without all documents and forms, it may get rejected. The same is the case with a bike theft insurance claim. You should understand the common reasons for claim rejections to avoid those mistakes. Some of them are given below:

• If you were riding the vehicle without a valid driver’s licence at the time of the incident

• If you were riding the vehicle with an expired insurance policy at the time of the incident

• If the claimant provides false or incorrect information regarding the incident

• If the incident occurred outside your bike insurance policy’s authorised geographical region, your claim could be rejected in the initial stage

• If the accident occurred under the influence of alcohol or drugs

• If the incident happened when the vehicle was used for carrying out illegal activities

• If the accident took place due to the carelessness and ignorance of the policyholder

• If the claimant repairs the damaged bike without intimating the insurer about the accident

What is the Maximum Bike Accident Claim Amount in India?

There are four categories of accidental cover in the bike insurance policies in India:

How to File for a Bike Accident Claim?

To file a claim for a bike accident, the policyholders should follow the steps mentioned below:

1. Note the vehicle registration number of the vehicles, time, and location

2. Go to the nearest police station and file an FIR for the accident. A copy of the FIR will be required by the insurance company during the claim settlement procedure

3. Inform the insurance company regarding the accident and series of events, as soon as possible 

4. Fill out the claim form and attach all the mandatory documents to initiate the claim procedure

5. The insurance company officer will verify the information and the damages caused to the vehicle, to draft the survey report

6. The insurance company will release the claim settlement amount as per the feedback mentioned in the survey report

How to File a Bike Accident Death Insurance Claim?

The accidental cover offers monetary compensation for the death of the policyholder/driver. It also takes care of external liabilities like death or injury caused to the third party. Check out the claim procedure for bike accident death:

• The nominee in the insurance policy has the right to file for compensation from the insurance company. The nominee is liable to get 100% coverage.

• Before filing for the claim, the nominee should complete the legal formalities like a death certificate or succession certificate

• For accidental deaths, the nominee will have to go to the nearest police station and file an FIR for the accident. A copy of the FIR will be required by the insurance company during the claim settlement procedure

• Inform the insurance company regarding the accident and series of events, as soon as possible. The insurance company will share the list of documents that will be required in the claim procedure. 

• Fill out the claim form and attach all the mandatory documents to initiate the claim procedure

• The insurance company officer will verify the information and will release the claim settlement amount

How to Claim Insurance for Bike Theft?

To claim insurance for bike theft, follow these steps:

• Visit the nearest police station and file an FIR for the accident. A copy of the FIR will be required by the insurance company during the claim settlement procedure

• Inform the insurance company regarding the theft of the bike. A list of documents will be shared by the insurance company to make a claim

• After 90 days, the police will issue a non-traceable report. The policyholder will then have to fill out the claim form and attach a non-traceable report along with other documents to initiate the claim procedure

• The insurance company will then analyse the IDV and other depreciation factors to evaluate the fair claim settlement amount.

• Once the evaluation procedure is completed, the insurance company will release the claim amount.

What is the Maximum Time in Which the Insurer Should Settle a Claim When All the Documents are Submitted?

Insurance companies promise a hassle-free and seamless claim settlement procedure to their policyholders. Generally, the maximum time the insurer takes to settle a claim upon successful submission of documents is 30 business days. It is due to some major complication or submission of inaccurate information, that there is a delay in the claim settlement. However, those cases will be settled within six months by the insurer.

Conclusion

There is no way we could predict what happens next in life. Any mishap could occur at any time. It is always better to stay prepared for unforeseen incidents. In the case of your two-wheelers, ensure it has comprehensive bike insurance with sufficient coverage to keep them prepared. Be it theft, accidental loss and damage or third-party liabilities, comprehensive insurance has got your back! Bajaj Markets is a platform that has several insurance companies as partners who offer various two-wheeler insurances. Choose one from the best bike insurances and stay prepared

Check Out Bike Insurance Plans Available at Bajaj Markets