By NewsGram StaffWriter

The thought of the wind swirling in your hair as you sweep your new bike in the streets is the stuff of fantasies. Riding high on your two-wheeler might be your passion; however, with that speed and thrill, there is a responsibility to protect yourself and your vehicle also. Here comes a two-wheeler insurance policy that insures your vehicle against any perceived damage.

However, most of us buy a two-wheeler insurance policy without knowing what it entails. God forbid, if any damage happens to your vehicle, are you sure that the insurer will settle your claim? There are various reasons on the basis of which an insurer can repudiate your two-wheeler insurance claims. Let's have a look at some of the reasons of claim rejection and necessary steps to prevent them:

1. Repairing the vehicle without informing the insurer: Many vehicle owners get their damaged vehicle repaired after an accident and then approach their insurer for reimbursements. As insurance companies find it difficult to validate losses, they reject claims of such policyholders.

Solution: You should first inform the insurer so that their authorized person can come to inspect your vehicle and estimate the extent of loss.

2. Undeclared modifications to the vehicle: If you have done modifications to your vehicle but haven't covered it while buying the policy, your insurer can reject your claim application even if losses occur due to some reasons.

Solution: Your insurer needs to be updated about any modification you or the previous owner has made to the vehicle, in case of a second-hand vehicle. Be it engine related or an added accessory, all changes made to the vehicle that alter it from its factory standard must be properly declared, else your claim can be rejected by the insurer.

3. Non-disclosure of material facts: If there is a non-disclosure of material facts or misrepresentation at the time of filing for a claim, it amounts to a breach of the duty of utmost good faith. As a result, the insurer can reject your claim as if it never existed.

Solution: It is imperative for policyholders to understand that the insurance contract is guided by underwriting principles which are based on the information given by them. Therefore, stating all things correctly in a policy document is crucial.

4. Losses not covered under the policy: There are certain perils, such as mechanical breakdown, consequential loss, and damages due to nuclear weapons or wars, which are not covered. If a claim is filed in respect of such losses, the insurer can reject your application.

Solution: Read all policy documents carefully and understand them well. In case of a doubt, seek clarification from the insurer.

5. Drunken driving: The insurer can reject your claim if the accident happened when the driver was under the influence of drugs or alcohol. The insurer can reject your claim on this ground and no court will hear your case.

Solution: Driving requires your full attention and drinking causes hindrance. So stay away from alcohol or drugs while driving.

6. Invalid driving license: Driving license is valid for a considerable period of time and after that you need to renew it. However, if the accident happened when you or someone else was driving your vehicle without a valid driving license, your two-wheeler insurance policy claim will be rejected.

Solution: Mr. Nitin Gadkari, India's transport minister, had revealed that almost one-third of driving licenses in India are invalid. Meanwhile, whatever the corruption and malpractices prevalent in issuing driving license in India, it is in the best interest of people to get a valid license.

7. No transfer of ownership: Remember, the insurance policy is bought in the owner's name and not in the vehicle's and hence this transfer of name is an important parameter to consider after you purchase your second-hand vehicle. In case where transfer formalities have not been done, the policy becomes null and void.

Solution: At the time of buying a second-hand vehicle, make sure to transfer your name in the policy copy.

8. Usage: A personal vehicle can't be used for commercial purposes. Your claim will be rejected if losses happened due to use of a personal vehicle for commercial purposes or for any other illegal activity.

Solution: Never use your vehicle for some other purpose. Also, do not lend your vehicle to any other person without knowing the actual purpose.

Conclusion

Your two-wheeler insurance policy is a smart investment that can save you from unaccounted expenses. However, merely buying the policy is no guarantee that the insurance company will pay for all losses and damages. Therefore, be true, instead of being reckless and take all necessary steps to avoid rejection of your claims.