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Is Engine Capacity a Reason for Denying claim
Nov 18, 2022

Are bike engine capacities grounds for denying accident insurance claims?

Buying a bike insurance policy can help you in a myriad of ways. Firstly, it enables you to comply with the law, since the Motor Vehicles Act of 1988 mandates that each two-wheeler owner has at least third-party motor insurance coverage. Secondly, you have the assurance that if your bike were to get involved in damaging situations, you would not have to worry about the large sums of funds required for repair. The ideal bike insurance policy includes comprehensive coverage that protects financially against many events, including accidents. You must file a claim with the insurer to receive this financial compensation. Once this claim is approved, the insurer takes care of the finances. However, there are various grounds on which an insurer can reject a bike insurance accident claim, one of which includes the bike having a high engine capacity. This article looks at the conditions in which a claim may be rejected due to the engine capacity of the bike.

How does the engine capacity influence the bike insurance policy in general? 

To understand a claim rejection scenario, we must first understand how bike engine capacities affect the bike insurance process generally. Essentially, the engine capacity or cubic capacity (CC) determines the power output of the bike. A higher CC means that the bike’s performance is better than its lower-capacity counterparts. That is why the CC of the bike is an important indicator of the two-wheeler insurance premium. A bike with a higher CC will likely incur an increased premium rate than a bike with a lower CC. Other factors play a role in calculating the premium as well; however, no other factor has as much influence as the cubic capacity does on the premium. Hence, when you input a higher engine capacity figure into a bike insurance calculator, the premium estimate tends to be higher. * Standard T&C Apply

Can a high/low bike engine capacity lead to accident claim rejection? 

The only sufficient grounds for an insurance policy to reject the accident claim for a bike with a higher/lower engine capacity is if the policy wording explicitly mentions such a condition. When you buy a vehicle insurance policy, the insurer takes a look at several aspects of the bike. You, as a buyer, must also do your part and ensure to read the terms and conditions thoroughly before you sign the policy proposal form. There may be a chance that some insurers may not cover a bike with a higher CC because such bikes tend to be high in performance. While this is a good sign, remember that such bikes may be more prone to danger. Plus, if these bikes were to get damaged, the repair costs can be quite heavy as well. That being said, most insurance companies do not discriminate against high-CC bikes. In the case of an accident claim, there is a high likelihood that the rider may be injured as well, which may require the Personal Accident (PA) insurance policy to be activated. The PA policy is a standard policy and a mandatory one as per the India Motor Tariff, 2002. Simply because you have a bike with a high engine capacity does not mean that you and your loved ones are bereft of the protection of vehicle insurance and PA coverage. * Standard T&C Apply

Other reasons that can lead to claim rejection 

A high engine capacity may not usually lead to claim rejection, but these reasons can:
  • False information

If you lied about your bike’s age/performance/capacity to the insurer to get a lower quote and the insurer finds out about the same, the claim can get rejected on a valid basis. *
  • Riding the bike while breaching the law

If the accident/damage occurred while you were riding the bike in a manner that goes against the law, the claim can be rejected. So, violating the traffic rules, riding under influence, riding without a valid license, and so on, can lead to bike insurance claim rejection. *
  • Commercial usage

If the bike is being used for a commercial purpose and the accident occurs at the time, the insurer has the right to reject the claim. * As a policyholder, you must be careful to follow the rules laid out for general road safety and read the minutiae of the policy before buying.  * * Standard T&C Apply 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.

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