Bike/Two Wheeler Insurance Claim Settlement Ratio
- Author :
- TATA AIG Team
- Published on :
When you buy insurance for your two-wheeler, it is generally done under the assumption that the insurance company will cover your vehicle's damage repairing costs. Usually, after an accident, you file a claim for reimbursement with your insurance company. The insurance company then processes the claim and reimburses you.
Insurance companies receive a large number of claims each year; some of them can get rejected for several reasons. Different insurance companies have different claim acceptance rates, and their policies generally influence it. This rate of settling claims is widely known as the claim settlement ratio.
What Is The Claim Settlement Ratio For A Two Wheeler?
It is the total number of claims settled in a financial year divided by the total number of claims received in the same year multiplied by 100. The claim settlement ratio or CSR of an insurance company is one of the key factors that lead to customers deciding whether or not they want to apply for insurance from that specific insurance provider.
The higher the bike insurance claim percentage or ratio, the higher the chances of your claim getting settled by the insurance company. However, you should note that the claim settlement ratio only gives you part of the picture.
Factors That Affect The Claim Settlement Ratio
There can be many reasons behind a lower claim settlement ratio.
- Not Following The Process: Policyholders not following proper procedure for the claims process can lead to claim rejection.
- Fewer Claims In A FY Year: Lesser claims in a financial year. This can lead to a higher claims ratio.
- Fraudulent Claims: A high number of fraudulent claims can lead the percentage to drop.
- Missing Deadlines: The claim must be raised/filed within the given time frame to be processed.
- Improper Or Incomplete Documentation: The policyholder needs to submit the required documents on time for claim acceptance.
Common Claim Rejection Reasons
In most cases, the insurance provider will accept and process your claims as and when they are raised. However, your claim can be rejected in some cases if you are found to have violated the terms of your bike insurance policy. Some reasons for claim rejection are:
You have provided incorrect or false information regarding the accident.
The accident was caused due to your own carelessness or negligence.
You carried out the repairs without informing the insurer about the accident first.
Suppose the repair cost is significantly higher than the bike's depreciated value. In this case, you must pay a significant sum equal to your bike's depreciated value.
You were found to have violated traffic laws at the time of the accident. These can include:
Driving without a driver's licence.
Driving with an expired insurance policy.
The vehicle was used to carry out illegal activities.
You were found to be under the influence of drugs or alcohol when driving.
The accident happened outside the geographical borders of India.
Documents Necessary To File A Bike Insurance Claim
Here are the documents you will usually be required to submit when filing for a bike insurance claim.
Your insurance policy document/certificate.
Filled and signed claim form.
Supporting documents related to your vehicle — Driver's Licence (DL), Vehicle Registration Certificate (RC), and Pollution Under Control (PUC) Certificate.
FIR in case of fatal injuries or death of the third party individual or any third party liabilities.
- A copy of your PAN card if your claim amount is higher than ₹1 Lakh.
For a reimbursement claim, the original receipt/bills of the repair costs.
Signed satisfaction or discharge voucher.
Death certificate in case of the policyholder's or third party's loss of life.
The specific documents required will vary with the respective insurance provider, the nature of the accident and the particular bike insurance policy.
Types of Bike Insurance Claim Settlements
Here are the main types of claim settlements policyholders generally file under their bike insurance policies.
- Cashless Claim
Cashless claims are only possible if you take your two-wheeler to one of the network garages listed under your policy's terms. In a cashless claim, your insurance provider usually covers the whole cost by directly paying the garage the expenses covered under your policy. So you will not be required to pay for any repair costs other than the compulsory and voluntary deductibles.
We at Tata AIG also provide this feature under our bike insurance policies.
- Reimbursement Claim
A reimbursement claim is initiated when you take your two-wheeler to a garage that is not included in the list of network garages provided by your insurer. For this process, you will initially be footing the bill for repairs.
After this, you must raise a claim with your insurer to be reimbursed for the repair costs. To do so, you must provide the necessary documents, like the payment receipts regarding the repair costs and other supporting documents.
Your insurance provider will reimburse the entire amount after making the necessary deductions (like compulsory and voluntary deductibles) covered under your bike insurance policy.
Maximum Claims Amount For Bike Insurance Claims In India
Here are the four major types of covers for accidents provided for bike insurance claims in India.
|Cover Name||Insurance Type||Who Is Covered||Maximum Compensation.|
|Accident Cover||Third-Party Insurance||Third-party||No maximum limit. The amount is settled on a case-by-case basis.|
|Perosnal Accident Cover||Third-Party Insurance||Bike Owner-Driver and||₹1 Lakh.|
|Comprehensive Bike Insurance||Third-Party|
|Personal Accident Cover (Pillion)||Available as an add-on cover for third-party or comprehensive bike insurance policies.||The Passenger||Maximum limit of the sum insured under the policy.|
|Personal Accident Cover (Paid Rider)||The Paid Rider||As per the Workmen's Compensation Act.|
The Maximum Time Needed To Settle A Bike Insurance Claim By The Insurer
The maximum time taken by the insurer to process your claim after you have submitted all your documents should be, at most, 30 days. In some cases, due to complications or when the insurer needs to investigate the incident further, the claim should be processed within six months.
Can You Claim Reimbursement For Minor Damages?
Yes, it is entirely possible to claim reimbursement for minor damages like scratches if your bike insurance policy has an own damage cover, either built-in or as an add-on cover. However, it is advised that you avoid doing so since it can cause you to lose your No Claim Bonus.
Furthermore, making many claims can lead to higher insurance premiums the next time you renew your insurance for your 2-wheeler.
Tata AIG Bike Insurance Claim Settlement Ratio
At Tata AIG, our primary focus has been to make the claim settlement process as quick and efficient as possible for our customers. You will be happy to note that we had a 99% bike insurance claim percentage in the FY 2022 - 2023 for our motor insurance claims.
To file your claim, you must visit our claim process page, initiate your claim by providing the necessary documents and click submit to get your online bike insurance claim processed readily.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.