Bike Insurance Without Inspection
When you buy a bike insurance policy or file a claim, you might wonder about the bike insurance inspection and the situations where the insurer could reject your claim. The Insurance Regulatory and Development Authority of India (IRDAI) permits insurers to conduct thorough inspections before approving purchase requests or settling claims. However, is this procedure mandatory?
Let’s explore every aspect of two-wheeler inspection to find out more.
What does a two-wheeler inspection involve?
Your insurer conducts a bike insurance inspection to assess the condition of your bike and its components. They also check whether your bike complies with government regulations for two-wheelers. During the inspection, the insurer may request various vehicle-related documents, such as the Pollution Under Control (PUC) certificate and service record book.
Why is a two-wheeler inspection necessary?
A vehicle inspection plays an important role in several ways. Here’s why.
- In recent years, insurance fraud has increased significantly. Many policyholders have been caught submitting fake repair receipts, false non-traceable reports (for theft), and other fraudulent claims to recover large sums from insurers. To prevent such fraud and avoid financial loss, insurance companies perform thorough inspections.
- A bike inspection helps your insurer assess the risk of insuring your motorcycle. If your bike is in good condition and you are an experienced rider, the insurer may offer a lower premium. The inspection also enables insurers to customize your policy according to your specific needs.
- An inspection alerts you to any potential problems with your bike in advance. This allows you to take the necessary precautions while riding and avoid road mishaps.
When is a bike inspection necessary?
A vehicle inspection plays an important role in several ways. Here’s why.
- In recent years, insurance fraud has increased significantly. Many policyholders have been caught submitting fake repair receipts, false non-traceable reports (for theft), and other fraudulent claims to recover large sums from insurers. To prevent such fraud and avoid financial loss, insurance companies perform thorough inspections.
- A bike inspection helps your insurer assess the risk of insuring your motorcycle. If your bike is in good condition and you are an experienced rider, the insurer may offer a lower premium. The inspection also enables insurers to customize your policy according to your specific needs.
- An inspection alerts you to any potential problems with your bike in advance. This allows you to take the necessary precautions while riding and avoid road mishaps.
When is a bike inspection necessary?
In several situations, you cannot purchase or file a claim for a two-wheeler insurance policy without an inspection. Here are a few of them.
- If you fail to renew your bike insurance policy before it expires or within the 30-day grace period, you will need an inspection. The insurer will want to confirm that the bike has not been involved in any mishaps during the lapse if there is a long gap between the insurance lapse and renewal.
- Suppose you make changes to factory-fitted components or undertake major aftermarket modifications. In that case, the insurer will inspect your bike to assess the legality of these changes and determine the policy premium.
- If you purchase a second-hand bike and the original owner transfers the policy ownership, the insurer will inspect the vehicle before updating the existing policy.
- If your bike sustains damage from an accident, natural disaster, or fire, the insurer will appoint a surveyor to assess the extent of the damage. The insurer will then estimate the repair and replacement costs based on this assessment and settle your claims accordingly.
Can an inspection reduce the two-wheeler insurance premium?
Inspection undoubtedly impacts your two-wheeler insurance premium. Depending on the situation, it can either raise or lower your premium. Here’s how:
- If you try to buy bike insurance without the required documents, like a valid PUC certificate, the insurer will identify this during the inspection. Based on their findings, they may either increase your premium or reject your application.
- If the insurer detects engine leaks, a weak battery, or major dents during the inspection, they will raise the insurance premium. This is because bikes in poor condition are more likely to be involved in accidents.
- Inspections have consistently reduced fraudulent or irrelevant claims. If you mistakenly file an irrelevant claim, the insurer will reject it but allow you to retain your no-claim bonus (NCB). You can then use your accumulated NCB to lower the premium amount.
- An inspection highlights any existing issues with your bike, enabling you to get them fixed promptly. Riding a well-maintained bike significantly reduces the risk of accidents. Ultimately, this helps you accumulate a no-claim bonus (NCB) and lower your premiums.
Bike Inspection Checklist for Insurance
Here’s what your insurer checks during the inspection process.
- The registration paper and number of your two-wheeler.
- Aftermarket installations.
- Two-wheeler’s chassis number.
- Documents like the PUC certificate, original purchase invoice, and driver’s license.
- Damages or dents on the bike.
- Clear photographs of accident-related damages, taken from different angles.
How can you buy two-wheeler insurance without an inspection?
Inspection is not always mandatory. Most insurers only inspect your bike if it falls into one of the specified situations. You can simply visit your preferred bike insurer’s website, complete the required fields, make the payment, and receive instant coverage. The insurer will then send a digital copy of your policy documents to your email address.
Some important factors that determine whether or not you will be approved for insurance include:
- Previous claim records.
- Bike’s age.
- Documents related to the two-wheeler.
- Registration Place.
- The make and model of your bike.
Renew your two-wheeler insurance before the current policy expires to avoid needing an inspection for renewal.
Why should you renew your policy on time, even if your insurer doesn’t require an inspection?
Renewing your two-wheeler insurance immediately after it expires is highly recommended for several reasons. Here are a few of them.
- You are not eligible for coverage during the grace period: The grace period starts the day your policy expires and continues for 30 days. Many people mistakenly think their bikes are covered for damage during this period, but that’s not true. The grace period only helps you maintain continuity benefits. If your bike gets lost or damaged during this time, your insurer won’t provide compensation.
- Penalties: Riding a motorcycle without insurance or with an expired policy is illegal. If traffic authorities catch you, you will face a fine.
- No claim bonus: If you fail to renew your policy on time, you will lose all your accumulated NCB immediately. This means you might miss out on a significant reduction in your policy premium.
Conclusion
Bike insurance inspections aren’t required by default. However, if there’s a lapse in your policy or significant damage to your bike from an accident, the insurer might conduct an inspection. To prevent problems, always ensure you provide accurate information when purchasing insurance or submitting claims.