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Total loss/constructive total loss bike insurance claim

Team AckoJul 18, 2022

The concept of total loss/constructive total loss can be confusing for some people. However, it is pretty simple to understand. This is one of the terminologies used by bike insurance companies to calculate the claim amount depending upon the extent of damage that a bike suffers.  Let’s deep dive into what a total loss/constructive loss bike insurance claim is.

Total Loss Bike Insurance Claim

What is total loss/constructive total loss in bike insurance? 

Sometimes, the insurer may repair, reinstate or replace the bike, bike part and/or accessories. Or the amount of the loss/damage may be paid in cash. Here, the liability of the insurer shall not exceed: 

  1. The Insured’s Declared Value (IDV) of the bike for total/constructive loss.

  2. In case of a partial loss (loss apart from total loss) - actual costs of repair and/or replacement of bike parts lost or damaged after considering depreciation & deductibles according to the terms of the policy.

Total loss/Constructive total loss is when the insured bike is highly damaged. If your bike is severely damaged due to any events such as accidents, fire, etc., ACKO may decide to declare your bike a total loss in bike insurance. Your bike will be declared a total loss if:

  • The bike has suffered damages that are beyond economical repair.

  • The insured vehicle shall be treated as a total loss/constructive total loss if the aggregate cost of retrieval and/or repair of the vehicle, subject to terms and conditions of the policy, exceeds 75% of the IDV of the vehicle.

  • In an event of declaring total loss, ACKO will pay the IDV inclusive of the wreck value and after considering mandatory deductibles as applicable under policy T&C. Deductibles are a part of the claim amount that the bike owner must bear.

What to do in case of a total loss/constructive total loss claim?

You (the bike owner) need to follow the claim process thoroughly in case of total loss. Contact the insurer (in this case, ACKO) as soon as possible after the bike damage has occurred. Vehicle total loss settlement may take some time, and you need to bear the expenses related to your daily travel. 

ACKO will decide on the type of settlement post-survey and assessment. Upon confirmation of admissibility of the claim, if in case the damages are repairable but the repair cost is beyond the IDV, it falls under the category of “beyond economical repairs”. Here, the insured vehicle shall be treated as a total loss/constructive total loss if the aggregate cost of retrieval and/or repair of the vehicle (subject to terms and conditions of the policy) exceeds 75% of the IDV of your bike. In this case, ACKO shall pay the IDV inclusive of the damaged bike’s wreck value, after considering the deductibles as per T&C of the policy.  

How to file a total loss/constructive total loss claim?

Here are the steps to file a total loss/constructive total loss claim at ACKO.

  • Step 1 - Login to your ACKO profile via the website or ACKO mobile app.

  • Step 2 - Find your bike insurance policy, click “Claim”, and answer a few questions to describe the claim.

  • Step 3 - Upload the soft copies of the required documents and click “Submit”.

ACKO will get in touch with you to help with the claim process. We will assess the damage suffered by your bike and determine whether this is a motorcycle total loss/constructive total loss claim. If yes, you will receive the claim settlement amount equal to the IDV of your bike, considering deductibles as per policy T&C.

How is bike insurance total loss/constructive total loss calculated?

Insurance companies refer to the following table to determine the IDV of the bike.

Age of the vehicle IDV in the percentage of ex-showroom price
Under 6 months 95%
6 months to 1 year 85%
1 year to 2 years 80%
2 years to 3 years 70%
3 years to 4 years 60%
4 years to 5 years 50%
Beyond 5 years Mutual decision between the bike owner and the insurer

Let’s understand the IDV calculation with the help of examples.

  • Mr. H’s bike suffered a total loss due to a natural calamity. The ex-showroom price of the bike was Rs. 60,000, and the age was between 1 to 2 years. As per the above table, the IDV of the bike is around Rs. 48,000 (considering the deductibles and other charges). Thus, the motorcycle total loss claim amount for Mr. H’s bike will be around Rs. 48,000 inclusive of the wreck value of the damaged vehicle after considering  mandatory deductibles as per policy terms.

  • Ms. K’s scooter accidentally caught fire because of an ongoing riot. It was left unattended and suffered major damage. Her scooter was 4 to 5 years old, and its ex-showroom price was Rs. 50,000.  The approx. IDV of the scooter will be Rs. 25000 in case of total loss claims. ACKO will settle the IDV amount which is  Rs. 25000 inclusive of wreck value of the damaged vehicle and after considering mandatory deductibles as per policy terms. 

How important is it to cancel the RC after total loss of the bike?  

As per Section 55 of The Motor Vehicles Act, 1988 and Supreme Court orders, it is mandatory to cancel the Registration Certificate (RC) of your bike after a total loss claim. 

The RC is a crucial document that contains the registration number and bike-owner details. If this document lands in the wrong hands, it could be used in criminal activity like bike theft. Thus, it is crucial to cancel the RC of your bike after a total loss claim.

How to cancel the RC?

The bike owner needs to visit the nearest Regional Transport Office (RTO) to cancel the bike’s RC. This must be done as soon as possible. Failing to do so may result in penalties. 


Total loss claim is a great example of the reliability of the insurance company. It shows that no matter the damage, your bike insurance company has you covered for the loss. Since total loss claims can only be made against a Comprehensive Bike Insurance Policy, you must ensure that you are buying maximum financial security to cover any bike-related losses.

Frequently asked questions

This section contains questions related to the concept of total loss in bike insurance. You can also send queries via ACKO’s email, [email protected].

What triggers a total loss claim?

Major damage to the insured bike would trigger a total loss claim. The damage can be caused by accidents, fire, or calamities.

Is it a total loss claim if my bike is stolen?

If a bike is stolen, it would be a theft claim, and the process would be slightly different. In a theft claim, you need to surrender both sets of bike keys and obtain a non-traceable report from the police.

How to cancel the RC of my bike after a total loss claim?

Visit the RTO where your bike is registered and get the RC cancellation form. Fill the form and submit the RC.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions. Explore More:


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