Understanding Bike Insurance Claim

You enter into a contract with your insurer by buying bike insurance. The insurer promises to compensate you for the loss that you might suffer due to an unfortunate incident which involves your bike. In return for such a payment/compensation, you pay a certain sum of money in the form of premiums.

Now let us assume that your two-wheeler gets involved in an accident, and you suffer a huge loss due to the same. As promised by your insurance company, you are expecting to get paid for this loss. Here you need to file a ‘CLAIM’ in order to get paid by your insurer.

Making a claim is the process of informing the insurer about the loss and then expecting the insurer to pay/compensate for it. You, thus, request the insurance company to take necessary actions.

This is why it is important that you opt for an insurer who settles your claims promptly. To help you gauge this, you can look at the company’s Claim Settlement Ratio.

The dictionary defines a claim as an application for compensation under the terms of an insurance policy.

What is Claim Settlement Ratio?

The dictionary defines a claim as an application for compensation under the terms of an insurance policy. Claim settlement ratio is the percentage of total claims settled to the total claims received by the insurer in a financial year. It helps you understand the likelihood of the insurer paying or compensating you for your loss.Claim settlement ratio is an important yardstick to measure the reliability of an insurance company.

By comparing the Claim Settlement Ratio of different car insurance companies, you will get a rough idea about the likelihood of your claim getting settled. While this does not entirely depend on the Claim Settlement Ratio, a comparison leads to a better understanding of the reliability of an insurance company.

Important Factors for Choosing an Insurance Company

These factors will help you choose your ideal Bike insurance company:

Claim Settlement Ratio by IRDAI

Taking a look at the claim settlement ratio of an insurance company will give a basic idea of the likeliness of you claim being settled.

Financial Stability

Having a basic idea of the financially stability of an insurer will be helpful in case of claims involving larger amount of money.

After Sales Services

It is important that your insurer provides a good service after you purchase a Bike insurance policy.

Type of Claims

Cashless claims

When you make a cashless claim against your two wheeler insurance policy, you do not have to worry about the repair costs. It is important that you take your car for repairs to a network garage. You just pay the deductible amount and the rest is taken care of by your insurer. The deductible is a portion of the bill that you pay from your pocket compulsorily or voluntarily.

A network garage is the one affiliated with your two-wheeler insurance company. Your insurer will deal with this garage directly.

Reimbursement claims

You need to pay for the repairs from your pocket and then submit the original bills, payment receipts, etc. to your insurer. Your insurer then subtracts the deductible amount and reimburses the repair amount to you. You can get your car repaired at your preferred garage.

Documents Required To File A Claim

Keep the following documents ready while filing a claim:

  • The copy of the registration certificate of your two-wheeler.
  • Police report or FIR.
  • The copy of the insurance policy
  • The copy of your license.
  • Original repair bill, cash receipts, etc.

Steps to Make Bike Insurance Claim


If your bike causes damage to a third party, immediately inform the police and your insurer.

If you are a victim of the accident, take the insurance details of the third-party vehicle, and inform their insurer.

After being informed, the insurer transfers the matter to the motor insurance claim tribunal.

The tribunal then decides the amount to be paid as compensation.


Step 1

In the case of any loss or damage to your own bike, inform your insurer and the police immediately.

If you do not inform within the stipulated time, your claim could be rejected.

Step 2

After being informed, the insurer appoints a surveyor to examine the case.

After a survey of your bike, the insurer sends an approval to the garage to begin the work.

Step 3

Your insurer then pays or reimburses the repairs cost as per the terms and conditions of your policy.


If your bike is stolen, immediately inform the police and your insurer.

Submit your bike documents to your insurer.

These include the registration certificate of the bike, your licence, etc.

You might also have to submit the original bike keys.

If the police cannot locate your bike within a reasonable time period, it issues a non-traceable certificate.

Your insurer then settles your claim as per the terms and conditions of your policy.

Common Reasons for Claim Rejections

An insurance company reserves the right to accept or reject a claim. So, it is advisable to take necessary precautions to avoid getting your claim rejected.

Incorrect Information

The details provided by you in the application form are incorrect or false


The accident took place while you were driving under the influence of intoxicating substances.


You were driving without a valid driving license.


You own a second-hand bike and the insurance is still in the name of the seller.


You failed to inform your insurer, about the accident, within the stipulated time frame.


You get your bike repaired without or before informing your insurer.


The damages occur due to your carelessness.


The insurer observes that the repair cost will be higher than the depreciated value of your bike. You will then be given an amount equal to the depreciated value.

Illegal Use

You use the bike for purposes other than those mentioned in the policy.

Inactive Policy

A claim filed against an inactive bike insurance policy will be rejected.

Avoid Claim Rejection

  • By driving  with a valid license.
  • Do not drink and drive.
  • Know your coverage and exclusions well.
  • Read the policy document carefully.
  • Keep a copy of your insurance policy in your two-wheeler at all times.
  • Know the claim process well.