A bike insurance policy enables policyholders to receive compensation for damages to their insured motorbike or scooter resulting from an accident, theft, or natural disaster. Insuring one’s motorcycle is a legal requirement that every proprietor of a two-wheeler must observe.
Regarding the claim procedure, making two claims per year is possible. There are no annual limits on the number of claims policyholders may submit. However, increased claims will affect NCB (No Claim Bonus). In addition, submitting multiple claims will increase the renewal premium.*
However, there are no limits on the frequency of claims policyholders can submit. However, when you repeatedly claim bike insurance, it can affect the following advantages of the chosen auto insurance policy.
- Increase in Premium Amount
When renewing their auto insurance policies, the insurer will increase the premium for policyholders who have repeatedly filed claims. As the financial risk of multiple claims increases for insurers, they begin charging higher premiums.*
- No-claim bonus (NCB) reduction
The No-Claim Bonus is a concession offered during bike insurance renewal to policyholders who have yet to file a single claim during the policy term. The concession percentage ranges from 20% to 50% and increases with each claim-free year. All accumulated NCB will be forfeited if a claim is filed within the policy period.
Therefore, policyholders must avoid submitting claims for minor damages to preserve their NCB. In addition, policyholders can utilise an NCB protection add-on to safeguard their NCB even after filing claims.*
- Reductions in compensation
If the repair cost is within the policy’s deductible, policyholders should not file a claim. Claim filing for trivial damages will result in inadequate compensation for policyholders.
Those who elect zero depreciation coverage on their comprehensive motorbike insurance plan are restricted in the number of claims they can file under their auto insurance policy. *
Required Documents for Submitting a Bike Insurance Claim
The following documents must be submitted by policyholders when filing a claim for bike insurance:
- RC copy of the bike’s claim form
- Tax payment receipt DL**
- Copy of bike insurance documentation FIR
Understand When to File Claims
Policyholders must adhere to the following guidelines to determine when to file a claim:
Only submit claims if the repair bill is at least the concession amount of the No claim bonus. Policyholders may submit a claim if the repair bill is less than the deductible. If the repair cost exceeds the deductible, insurers will not pay out a claim.
Policyholders are not obligated to pay for repairs in third-party damage if the responsible parties must pay for them. In this regard, all motorbike proprietors should know that the Motor Vehicles Act or MV Act of 1988 requires them to carry third-party or liability-only coverage.*
In conclusion, every bike owner must purchase a bike insurance policy to safeguard their finances in an unforeseen bike accident or theft. In addition to obtaining an insurance policy, individuals must clearly understand the number of claims they can submit.
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* Standard T&C Apply
** Tax benefit is subject to change in prevalent tax laws
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.