A Comprehensive 2024 Guide To Claim Bike/ Two-Wheeler Insurance

by SMCIB on Friday, 21 June 2024

A Comprehensive 2024 Guide To Claim Bike/ Two-Wheeler Insurance

In a recently published article by the Times Of India, two-wheeler deaths have increased by almost 8% to nearly 75,000 in 2022, making up 44% of the 1,68,491 fatalities on Indian roads. When you purchase your dream bike, you should also buy insurance, even though you hope you never have to use it. This is because having a comprehensive bike insurance plan is crucial for protecting yourself and others on the road.

However, simply having insurance is not enough - knowing how to make a claim when the need arises is equally essential. In this article, we will discuss the process of claiming bike insurance to help you navigate this often daunting aspect of bike ownership.

Bike Insurance

Bike insurance is a type of insurance that protects motorcycles, scooters, and similar two-wheeled vehicles. Its main aim is to help you or the rider of your vehicle during unexpected events like accidents, theft, natural disasters, or if someone else gets hurt because of your bike.

The Motor Vehicles Act of 1988 levies that having at least a third-party bike insurance is a must. And if you ride without it on public roads, you are breaking the law and could get punished.

You should remember that whether you get your bike insurance online or in person, you must ensure that the insurer is approved by the IRDAI.

What Is A Claim?

As stated in the policy document, you can file a two-wheeler insurance claim with your insurance provider to pay for the damage or loss to their insured vehicle. The amount the insurer gives when you make a claim depends on your bike's IDV and the type of policy you choose. This can either be a standalone own damage policy, a third-party bike insurance policy, or a comprehensive policy.

Types Of Claim

There are primarily two types of claims, and they are -

  • Cashless Claims
    You can make a cashless claim when you take your bike to one of the insurer's approved garages for repairs. With this type of claim, you do not have to pay anything upfront at the garage. Instead, the insurer handles the payment directly to the garage, following the terms of your policy. You should remember that you may still have to pay the deductibles you agreed to when you purchased the policy.
  • Reimbursement Claim
    If you decide to get your bike fixed at a garage that your insurance company does not approve of, you have to make a reimbursement claim. Here's how it works -
    • First, you pay for the repairs yourself.
    • Then, you submit a claim to your insurer to reimburse that money.

The insurer will reimburse you for the approved costs, but they might subtract any deductibles you agreed to pay when you bought your policy.

Claiming Under Bike Insurance

Let's understand in detail about how to make a cashless and a reimbursement claim -

For A Cashless claim

Here's what you need to do for a cashless claim -

Step 1: Let The Insurer Know
If your bike meets with an accident, you should inform your insurance company right away. Provide them with all the details about what happened and the damage to your bike.

Step 2: Pick A Network Garage
Next, you need to inform your insurer about the name and address of the garage where you will get your bike fixed. Remember that your bike needs to be in a network garage for cashless claims.

Step 3: Provide An FIR Copy (If Needed)
If there is a third party involved or an accidental death, your insurer might ask for a copy of the First Information Report (FIR).

Step 4: Schedule A Surveyor Appointment
After you have provided your insurer with all the necessary information, they will send a surveyor to the garage to assess your bike's condition.

Step 5: Wait For Surveyor's Approval
If the surveyor approves the submitted claim, the garage can fix your bike immediately.

Step 6: Submit Documents To The Surveyor
The surveyor will ask you to sign a few documents -

  • Claim Form: This form has all the details of your claim.
  • Satisfaction Voucher: This voucher shows you are satisfied with the repairs before paying.
  • Discharge Voucher: This form confirms the amount you will receive during the claim settlement, and you will need to sign it to acknowledge it.

You will also need to provide some additional documents as the customer -

  • Copy of your RC
  • Driver's Licence
  • ID Proof

Step 7: Review The Final Bill
After the garage finishes the repairs, it will be sent directly to your insurance company. The insurer will check the bill and deduct any compulsory deductibles and consumable charges. They will then pay the approved amount to the garage. You should remember that you need to cover the compulsory deductible and consumable charges directly to the garage.

For A Reimbursement Claim

If you need to file for a reimbursement claim after an accident, here are the steps to follow -

  • Firstly, notify your insurance company about the incident.
  • Following this, you should gather the necessary documentation to support your claim. This typically includes -
    • A completed claim form,
    • An estimate from the body shop conducting repairs and
    • If applicable, include a copy of the First Information Report (FIR) in cases involving third parties or fatalities.

It is important to note that the specific documents needed may differ based on your insurance provider. After you notify them about the incident, the insurance provider will appoint a dedicated surveyor to assess your bike at the garage. Upon the surveyor's approval of the repair plan, the garage can commence the necessary work. Once the garage completes the repairs, you must settle the total bill with the garage. After this, you must send the bill, invoice copy, and any additional requested documents to your insurance company to begin the reimbursement process.

How To Claim Two-wheeler Insurance Based On The Type Of Damage?

For Own Damage Bike Insurance Claims

When you need to claim for own damage, you can follow these steps -

  • Notify The Insurer
    Promptly inform your insurer, ideally within 48 hours of the damage occurring or as soon as possible. When you contact your insurance company, you should provide a comprehensive description of the damage to your vehicle. It is crucial to disclose all relevant details to ensure a smooth claim process.
  • Report To The Police
    Filing a First Information Report (FIR) to support your claim is essential. This is necessary in cases involving theft, accidental fatalities, or third-party involvement. The FIR contains vital information about the driver, vehicle, passengers, and witnesses, which serves as the basis for your claim.
  • Assessing The Damage
    After informing your insurance company, they will send a surveyor to assess the vehicle and ascertain the extent of damage. Subsequently, the surveyor's evaluation report will be forwarded to the insurance company to progress with the claim process. This dedication to transparency ensures a seamless and hassle-free claim settlement procedure.
  • Submitting Documents For Own Damage Claims
    When you have to file your own damage claim, it is necessary to provide a set of essential documents. They include -
    • Duly filled and signed claim form.
    • A copy of the insurance policy.
    • Tax payment receipt.
    • An estimate of the vehicle repair costs obtained from the repair shop where the vehicle is set to be fixed. This estimate should be signed and stamped by the garage.
    • The original repair invoice and payment receipt that is signed and stamped by the garage. For a cashless claim, only the repair invoice needs to be submitted.
    • A claims discharge cum satisfaction voucher that is signed across a revenue stamp.
    • Vehicle inspection address details if the vehicle hasn't been taken to the nearest garage.
    • A verified photocopy of the driver's driving licence at the time of the accident, along with the original.
    • A verified photocopy of the registration certificate, along with the original.
    • PAN Card.
    • Aadhar Card.
    • A photocopy of the Pollution Under Control Certificate.
    • A cancelled cheque or passbook is specifically required for reimbursement claims.
  • Settling The Claim
    After the completion of the damage inspection, the service provider will furnish an estimate for the repair cost. Upon receipt of this estimate, the insurer will authorise the vehicle's repair.

It is important to note that depending on your selected cover amount, you may be responsible for paying deductibles and depreciation charges for replacement parts. A deductible represents a portion of the claim amount that you need to cover from your pockets. Therefore, you should keep all these aspects in mind to understand your potential out-of-pocket expenses.

For A Third-Party Liability Bike Insurance Claim

For filing a third-party liability claim, you can follow these simple steps –

  • Filing An FIR
    You can initiate the claim process by visiting the closest police station to file an FIR (First Information Report) and getting a charge sheet. You will have to retain a copy of this report as it contains all details of the event and the involved parties.
  • Submitting Documents For Third-Party Liability Claims
    To ensure a successful third-party liability claim, it is crucial to have all the necessary documents ready for submission, and they include -
    • First Information Report (FIR).
    • A duly filled and signed claim form.
    • Copy of your insurance policy.
    • Tax payment receipt.
    • An estimate of the vehicle repair costs from the repair shop where you intend to fix the vehicle. This estimate should be signed and stamped by the garage.
    • The original repair invoice and payment receipt that is signed and stamped by the garage. You should keep in mind that for a cashless claim, only the repair invoice needs to be submitted.
    • A claims discharge cum satisfaction voucher that is signed across a revenue stamp.
    • Address details for the vehicle's inspection, especially if it was not taken to the nearest garage.
    • A verified photocopy of the driver's licence at the time of the accident provided to the surveyor along with the original.
    • A verified photocopy of the registration certificate provided to the surveyor along with the original.
    • Aadhar Card.
    • PAN Card.
    • A photocopy of the Pollution Under Control Certificate.
    • A cancelled cheque or passbook is necessary for reimbursement claims.
  • Locate The Nearest Motor Accidents Claims Tribunal
    All third-party liability claims are handled by the Motor Accident Claims Tribunal (MACT). If the incident took place near your residence, the claim should be filed at the nearest tribunal.

    And, if it happened in a different area, the claim should be filed at the tribunal closest to the accident location. The tribunal authorities will then conduct a comprehensive assessment of the situation before proceeding with the next steps.
  • Claim Settlement For Property Damage
    There is a limit of Rs. 7.5 lakhs when you have to file a property damage compensation. This means that it is your responsibility to pay any expenses beyond this limit. However, in cases of injury or fatality, there is no limit to the claim amount. This approach aims to ensure that you receive just and sufficient compensation for your losses.

For Bike Theft Claim Process

Follow these steps for a bike theft claim -

  • Report The Theft
    Start by filing an FIR (First Information Report) at your nearest police station. Include important details about your vehicle, such as the chassis number, registration number, model, colour, and any unique identifiers like scratches, dents, etc. Providing complete information is crucial for a thorough investigation.
  • Contact Your Insurance Company
    After you report the theft to the police, you should immediately inform your insurer and file a claim. Be transparent and provide all relevant details about the incident, as withholding any information can complicate the claim process.
  • Notify The RTO
    It is crucial to inform the RTO (Road Transport Office) about the theft of your vehicle. The RTO oversees vehicle ownership transfers, and notifying them promptly helps prevent unauthorised changes by the thief.
  • Submit Required Documents
    When filing a theft claim, make sure to submit the following documents -
    • Insurance policy document
    • Tax payment receipt
    • Letter of subrogation
    • Official notice to the RTO about the theft and cessation of vehicle use
    • Forms 28, 29, and 30
    • Previous insurance policy details, including policy number, insuring company, duration, and coverage period
    • Information about duplicate keys, warranty cards, booklets, and other accessories
    • Claim discharge voucher that is signed across a revenue stamp
    • Registration book
  • Police Investigation
    After you report the theft to the police, they will use the provided details to search for your vehicle. If the vehicle is not found within six months from the date of the complaint, the police will issue a No-Trace Report.
  • Transferring The Registration Certificate (RC)
    Once you have the No-Trace Report from the police, submit it to your insurer to get your claim approved. After approval, the registration certificate (RC) of your stolen vehicle will get transferred to the insurance company.

It is important to understand that the claim submission process and required documents can vary between insurers. When purchasing a bike insurance policy, ask your insurer about their specific claim procedures and necessary paperwork. If you follow the steps listed above, you will be able to ensure a smooth and hassle-free claim process.

To Conclude,

Claiming bike insurance is a shield against accidents or theft. By following the necessary steps outlined by your insurer, you can swiftly and efficiently file your claim and safeguard yourself.

You should remember to gather all relevant documents to validate your claim. Keep in mind that promptly notifying your insurance provider and providing accurate information will facilitate a smoother claim experience. Ultimately, having bike insurance offers peace of mind and safeguards against potential financial burdens.

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