Here Are Important FAQs Regarding Bike Insurance in 2023
How many times can you claim insurance for a bike in one year?
It is widely known that as per the Motors Vehicle Act, a car or two-wheeler must have at least third-party insurance. Without valid bike insurance, you cannot ride your bike on Indian roads. But just third-party insurance is never enough. By paying an extra bike insurance premium, you can easily buy comprehensive car insurance and stay protected from third-party liabilities, self-bike damage and even medical expenses in case of an accident. The purpose of buying bike insurance is to stay covered as and when you have to bear some costs related to your bike. You can raise a claim against these expenses if they are covered under your bike insurance policy.
Now, there are many such aspects regarding claim settlement that people are not aware of. For example, how to raise a claim or the fact that you can raise a claim more than once a year. However, raising a bike insurance claim more than once comes with some consequences, which are discussed in the blog below.
How to make claim for a bike insurance?
Claim settlement is a process where a policyholder raises a claim to get compensation for the financial losses or expenses incurred for the bike. Bike insurance claim settlement can be done in two ways –
- Cashless claim: Under a cashless claim settlement process, you don’t have to bear the bike repair expenses from your own pocket. In case of damage, you will have to take the bike to one of the authorised network garages of the insurance company. After doing the necessary evaluation the garage will give your insurer a rough estimate of the repair expenses. Once the repair work is done, the expenses will be settled between your insurer and the garage. You are not required to pay for the expenses.
- Reimbursement claim: Under reimbursement claim settlement, you can choose to take your bike to a garage of your choice and get it repaired. Here, you will pay for the repair charges. After that, you will have to submit all the necessary and related documents related to the damage and repair. After verifying the details, your bike insurance provider will reimburse the cost of the repair and credit the reimbursed amount to your bank account.
Can I claim bike insurance twice a year?
You pay the bike insurance premium essentially to stay cushioned against the financial losses that may arise due to an unanticipated mishap or damage to your bike. Now, there is no such guarantee that you won’t have such uncertainties or risks more than once a year? Consequently, you would require the safety of your insurance as and when a crisis arises. This brings us to a crucial question – if you can claim bike insurance more than once a year?
Yes, you can! Because there is no restriction on the number of claims you can raise in a year. However, raising a claim multiple times increases your bike insurance premium. Also, it impacts the No Claim Bonus, and there can be some other additional ramifications as well. Some of them are discussed below:
You lose no claim bonus: No Claim Bonus (NCB). NCB is usually awarded as a discount on bike insurance premiums which can accumulate up to a discount of 50%. When multiple claims are made, you lose the NCB.
Hike in premium: When you repeatedly file insurance claims, insurers increase the premium when renewing the policy. Moreover, multiple claims increase the financial risk to the insurance company.
Reduced compensations: If you raise multiple claims against your bike insurance, for small repair expenses or damages, which you can afford otherwise, you end up reducing your sum insured limit. In case of a major repair, eventually, you will have a reduced cover amount.
Steps of raising a bike insurance claim
Listed below are the steps you should follow to make a claim –
Step 1: Inform the insurer about the damage to the bike.
Step 2: If the damage has occurred due to an accident, inform the same to police and lodge an FIR
Step 3: Take photos of the accident place and the damage to the bike.
Step 4: Once the insurer carries out the inspection, you will have to submit the necessary documents.
Step 5: Once the insurer receives the relevant documents, they will verify the documents.
Step 6: After verification, the insurance company will compensate the claim
Documents required to claim bike insurance
Listed below are some documents that are essential to raising a bike insurance claim –
- Claim form
- Registration certificate
- Driving licence
- Bike insurance policy details
- FIR copy.
- A copy of the PAN
- Pollution under control certificates
- Bill receipts of the garage for the repair done
What is the right time to claim bike insurance?
Given below are some tips given on when to raise a claim –
- Do not raise the claim if it is a small damage or repair. Or an amount that won’t cause you financial distress. By doing so you can preserve your NCB.
- File a claim, if the repair cost is more than the deductibles. The deductible is the amount that, you as a policyholder agree to pay from your pocket, and the insurer covers the amount over and above the deductible amount.
- In case of an accident and consequent major repair, inform your insurer immediately. Initiate the claim process as soon as possible.
Every bike holder must-have bike insurance to save themselves from the financial expenses and legal liabilities that may arise because of a mishap. However, one should claim insurance when repair expenses are more or equal to deductible amounts in the policy. Furthermore, if it is not a major expense, it is better to cover the same from your end. You don’t want to lose your NCB or pay a higher bike insurance premium for expenses that you could have managed well from your end.
Disclaimer -The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.