5 Common Reasons for Motorcycle Insurance Claim Rejection

Purchasing insurance is relatively different from buying various financial products and services, which is due to the service’s intangible nature. For example, when you purchase bike insurance, you only acquire a policy document after making your insurance premium—the policy assists in completing legal formalities and receiving financial assistance in case of accident or any mishap.

However, your responsibility as an insured person doesn’t end here, and you will have to adhere to various insurance factors to succeed in claiming settlement. For your claim request to go through, it is crucial to understand all aspects of your bike insurance policy that can settle your costs in case of an accident. Lack of adequate information on inclusion and exclusion can result in the rejection of policyholders claims by the insurance company.

1. Failure to Renew Your Policy

Most motorcycle insurance policies are renewed once a year unless you have opted for a long-term approach that lasts up to 3 years. If your policy in which you are raising a claim has expired at the time of the incident, then the insurance company will reject your claim.

Likewise, no insurance company will accept your claim request if your policy has lapsed, as the insurer only covers your bike within the policy period. Therefore, it is advisable you continually renew your policy before expiry to ensure you have continuous motorcycle insurance coverage and avoid any hassle while raising a claim.

2. Lack of Coverage

Unfortunately, most policyholders do not read through the motorcycle insurance policy documents thoroughly to understand their insurance coverage. When it comes to insurance, you can’t claim for own-damage expenses if you have a third-party insurance policy.

In addition, if you hold a comprehensive approach with no add-ons covers, you may end up bearing some costs out of your pocket. In such instances, your insurance claim can be rejected for making a wrong claim.

3. Raising A Claim Past Deadline Time

Motorcycle insurance in Singapore usually has a specified period in which you can raise a claim for the policy cover. Individuals make this common mistake of delaying in submitting the claim hence missing the deadline.

It is advisable to raise a claim immediately since most insurers have different deadlines. For instance, if you lay a claim 30 days after an accident, insurers will reject your claim highlighting the delay in posing a claim request. The reason remains that an individual can use the time to distort or plant evidence, particularly in an incident where the First Information Report is needed.

4. Unlawful Actions

When an individual requests motorcycle insurance claims from the insurer, the company has to be assured that the policyholder didn’t engage in any illegal act for the claim request to be successful; otherwise, the company will reject it. The insurance company will deny your claim request if it finds out that your insured motorcycle was damaged due to illegal usage such as bike racing.

Also, as a policyholder, you shouldn’t ride your motorcycle under the influence of alcohol or drugs or engaging in any stunts. It would help if you were not found riding your bike without a valid driving license during the incident.

Finally, modifying your motorcycle so much until it is difficult to trace it back to its original model shouldn’t be done without informing your insurer. The insurer will reject your claim request in such instances, and you might also face policy termination.

5. Using for Commercial Purpose

Using for Commercial Purpose

For two-wheeler insurance policies, you get separate plans for commercial bikes and private vehicles. You can’t use a private motorbike for commercial purposes, and you should opt for a different policy for commercial vehicles.

Suppose the insurer finds out that a unique bike or scooter was damaged during a mishap or accident where it was being used as a commercial bike. In that case, the insurance company will reject the claim request immediately, and you will have to meet the expenses from your pocket.

Holding an insurance policy document is not a guarantee you will be compensated for expenses that you incur when your motorbike gets in a mishap or accident. As a policyholder, you should read through the policy document extensively to have adequate knowledge of the claim request process and understand its exclusions.