How Many Claims Can You Raise in a Two-Wheeler Insurance Policy?

Two wheeler insurance allows any number of claims per policy year; there's really no fixed limit. Almost all insurance companies in India do not impose a claim limit per policy, so theoretically, you can even settle the second, third, fourth claim if each occurrence is authentic, the case is in accordance with the wording of the policy, and your sum insured has not yet been fully exhausted.

Every time you file a claim, your No Claim Bonus is nullified, and your renewal premium can be pushed up significantly. That's why, if you keep making small claims, you might end up spending far more than if you spent your money directly. 

Is there a fixed limit on raising bike insurance claims?

Regulated by IRDAI, there is no such standard in the two wheeler insurance segment to limit the number of claims a policyholder can make per financial year. The insurance providers set the maximum number of claims they are willing to accept in a given financial year and it is also mentioned in the terms and conditions of the policy.

There exist some built-in policy features that ultimately limit you:

• Insured Declared Value (IDV): The combined claim amount of own-damage cannot surpass IDV, which is the present market price of your two-wheeler. A case of theft or a total-loss vehicle claim generally results in the full IDV being paid and the insurance being terminated.

• Genuine, covered incidents: Each claim must be related to a loss under the policy (e.g., accident, fire, theft, natural calamity, third-party damage). Multiple or false claims may result in denial.

• Deductibles: A fixed compulsory part for deductible is paid by you in the case of own-damage claims and it may include a voluntary deductible that is the amount you yourself decide on; after that, the insurer takes over.

How does each bike insurance claim affect your No Claim Bonus?

The biggest thing to keep in mind when filing a claim is how it can affect your No Claim Bonus (NCB). A No Claim Bonus is the discount you get on your own-damage premium when you don't file a claim for a year. The discount that you gain is taken away from you at once if you make a claim. A single claim in a year can completely erase or at least seriously limit any bonus you might gain for claim-free driving in that year.

Over the years that you remain claim-free, the discount gets you from 20%, for one year of driving without a claim, up to the maximum possible discount of 50%:

Let's say you got discount for 50% NCB, raised a claim and in turn, your discount dropped back to zero. The cost at renewal goes significantly up if a bike is claimed. So, a minor dent may not be worth reporting to a bike insurer, as it will cost you later.

Should you raise multiple bike insurance claims?

Deciding whether to file a claim is a matter of balancing the amount of repair with the cost of the claim, which in form will be a loss of NCB and an increase in future premiums.

Let us take an example to get it clearer. Imagine your own-damage premium is Rs 2,000 a year, and you have a 50% NCB, which means it only costs Rs 1,000 to get the insurance. You have been in a couple of accidents in one year：

• Situation 1: A damaged panel with a total repair cost estimated at Rs 800. The loss of your discount for not paying a claim for such minor damage will only mean you won't have the 50% NCB in the coming year. That would raise your premium by something like Rs 1,000, in addition to the compulsory deductible. Losing Rs 1,000+ in benefits just to claim an Rs 800 repair is hardly worth it. Do it yourselves.

• Situation 2: A major accident involving damage amounting to Rs 25, 000. In this case, the insurance payment clearly outweighs the deductible, and any bonus forgone and therefore, filing a claim is obviously the right approach.

Since there is no limit, you can use both. However, the best course of action is probably to disregard the small claim, shield your NCB from being affected, and just claim for the large loss.

How do own-damage and third-party insurance claims differ?

A two-wheeler insurance policy usually can generate two kind of claims at your disposal, which are treated differently. Understanding this split would mean knowing how much of the bike's IDV and NCB are affected by it.

A third party insurance cover which is only mandatory by law for riding two-wheeler vehicles in India, does not allow one to file an insurance claim at all for damage to their own vehicle.

How do you raise a bike insurance claim on your policy?

What happens after you exhaust your bike insurance cover?

Your own-damage claim coverage expires after you claim up to the total of your insurable IDV worth. When a thief steals your car or you suffer a total loss of it, the insurer hands over the entire IDV, and your own-damage coverage stops till the end of the policy period because basically there is nothing left that can be repaired or the car doesn't exist anymore.

As for the partial-damage case, you can keep claiming as long as the total claim money isn't higher than the insurable value. Normally, riders won't hit the max just by getting small things fixed. On the other hand, third party bike insurance has separate restrictions (i.e., unlimited for death or injury and restricted for property damage) and so it is affected to your past own-damage claims.