Two Wheeler Claims & Claim Settlement Ratio

Ignorance is bliss. But, not in the case of insurance. You must know your policy well to understand its coverage. After all, your bike insurance policy becomes your saviour during accidents and damages. But, for this saviour to be of any help, you must know how to make a claim on your bike insurance policy.

Let’s spare you the complicated dictionary definition of claims. Simply speaking, claims is the process of informing your insurer in case you suffered a loss.

For an insurance company, total claims settled in a year can be worth crores of rupees in a year. In 2015-16 alone, a total of Rs 15,428.54 crore were claimed in motor insurance, as per IRDAI data. This is a sum total of the number of paid claims and the estimate of unpaid liabilities for the insurance companies during a year.

What Is Claim Settlement Ratio?

Claim settlement ratio is the percentage of total claims approved and settled to the total claims received in a financial year. It is an important tool to measure a company’ performance and customer satisfaction. The ratio helps you to gauge the reliability of a two-wheeler insurance company.

As a general rule, the higher the claim settlement ratio, the more trustworthy the insurer.

What Are The Types Of Claims?

 Cashless ClaimsReimbursement Claims
MeaningWhen you make a cashless claim against your bike insurance, you do not pay for the entire repairs amount from your pocket.When you make a reimbursement claim against the own damage cover of your two-wheeler insurance, you pay for the repairs from your pocket first. The insurer then pays you back.
Garage networkThe insurance company has its own network of garages.
Your bike is repaired in any one of these.
You choose a garage that is not necessarily a part of the insurer’s network.
Your bike is repaired in such a garage.
DeductibleYou do not pay anything except the deductible.
Your insurer takes care of the rest.
You pay the entire amount including the deductible.
Your insurer subtracts the deductible, and reimburses the repair cost to you.

How To Make A Bike Insurance Claim?

You make a claim in either of the three cases:

1)  Third-party liability

2) Own vehicle damage

3) Total loss of vehicle in case of theft or fire etc.

The process is as follows:

StagesThird-partyOwn-damageTheft
Step 1If your bike causes damage to a third party, immediately inform the police and your insurer.
If you are the victim of the accident, take the insurance details of the third-party vehicle, and inform their insurer.
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 can be rejected.
If your bike is stolen, immediately inform the police and your insurer.
Step 2After being informed, the insurer transfers the matter to the motor insurance claim tribunal.After being informed, the insurer appoints a surveyor to examine the case.
Once done, the insurer sends an approval to the garage to begin the work.
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.
Step 3The tribunal then decides the amount to be paid as compensation.Your insurer then pays or reimburses the repairs cost as per the terms and conditions of your policy.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.

Things to remember about claims:

Claim Rejections

It can be terrifying if your insurer steps back when you make a claim.

This may sound impracticable. But, it is possible. Your insurer has the right to reject your claims in the following cases:

  • While filling the application form for buying the policy, if you provide false or incomplete information.
  • You do not inform your insurer about the accident within the given time frame.
  • You were riding under the influence of drugs or alcohol.
  • You do not have a valid driver’s licence.
  • You have a second-hand bike, but the insurance policy is still in the name of the previous owner.
  • You get your bike repaired without or before informing your insurer.
  • You use your bike for illegal activities.
  • If the post-accident status is bad, and the insurer believes that the repair cost will be higher than the written down value of your two-wheeler.
  • Damages caused when driving outside the country.
  • When damage is caused deliberately.
  • Using the bike in an area with the chances of a potential nuclear attack.
  • Using the bike in a war zone.
  • Electrical or mechanical breakdown.
  • If the bike is used for purposes other than the permitted use, for example, commercial use, your claim will be rejected.
  • In the case of consequential loss.
  • Lapsed bike insurance policy.

Claim Settlement

Ideally, you would want the entire claim process to be smooth. To ensure a hassle-free claim process, be mindful of these things:

  • Always have a valid licence.
  • Do not drink and ride.
  • Follow the traffic rules.
  • Read the policy documents carefully.
  • Be fully aware of your coverages and exclusions.

 Documents Needed While Filing 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 licence.
  • Original repair bill, cash receipts, etc.

With Just One Claim In A Year, Can You Still Get A Bonus?

No, you lose your no claim bonus even if you make a small claim in a year.

However, in the case of a long term two-wheeler insurance policy, your no-claim bonus remains intact at the end of three years, even if you had made a claim during the policy period. Long term insurance is available only for two-wheelers.

So, just make sure that you inform your insurer in the event of a claim before getting your two-wheeler repaired. And you will be compensated to the extent of the coverage of your two-wheeler insurance policy accordingly.

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