All About Loss/ Constructive Total Loss Bike Insurance Claim

Bajaj Finserv App

Where there is accidental damage, insurance will be your savior. When it comes to total loss/ damage to your bike, you may think about how is it going to get fixed, how much expense you need to bear, and so on. But we assure you, there is nothing to worry about. Your bike insurance policy will protect you against such expenses as well. Now, what is loss/constructive loss? Let us explain in detail.

Total loss/Constructive total loss is when the insured bike is highly damaged. If your vehicle is severely damaged due to any accidents, fire, natural calamity, etc., then your insurer may declare your bike a total loss in bike insurance.

Your bike is declared a total loss in the following cases:

  • The bike has suffered damages that are beyond economical repair.
  • The insured vehicle shall be considered as a total loss/constructive total loss if the aggregate cost of retrieval and/or repair of the vehicle, subject to terms and conditions of the policy, exceeds 75% of the IDV of the vehicle.

When it comes to declaring your vehicle under total loss, the insurer will pay the IDV inclusive of the damage value and will proceed after considering the mandatory deductibles as applicable under the policy’s terms and conditions.

Note: Deductibles are a part of the claim amount that the bike owner has to bear.

What you need to do in case of a total loss bike insurance claim?

In such a case, you must follow the claim process thoroughly in order to experience a smooth claim settlement. After the damages occur, you need to contact your insurer as soon as possible. Please note that total loss claim settlement may take some time and you are supposed to bear the expenses of your daily commute.

Post the assessment of the damages caused to your bike, your insurer will decide on the type of settlement.

How to file a total loss claim?

The process is as simple as any other claim process. Below we have mentioned the steps to raise a total loss claim against your bike insurance policy:

Step 1 – Login to your insurer’s official website or mobile app.

Step 2 – Find your bike insurance policy and click on “Claim”.

Step 3 – Answer a few questions to describe the claim.

Step 4 – Upload the soft copies of the required documents and click on the “Submit” tab.

And your claim has been raised!

Important points to remember

You must keep in mind that it is mandatory to cancel the Registration Certificate (RC) of your bike in case of total loss. This is made compulsory as per Section 55 of The Motor Vehicles Act, 1988, and Supreme Court orders.

The RC of a vehicle contains the registration number and owner’s personal details. If it lands in the wrong hands, it may lead to criminal activity. Hence, you must ensure to cancel the RC of your bike.

To conclude,

We hope you now have a clear understanding of how a total loss claim settlement works. If you want to know more about it or wish to explore more insurance plans, you can download our Bajaj Finserv App.

Anywhere, Anytime insurance with the Bajaj Finserv App!

The Bajaj Finserv App is a high utility App that takes care of all your financial needs including insurance. On the app, you can explore bike insurance plans from our trusted partners. Here you can view product features, compare prices and purchase a plan that is best suited to your needs. All this in a matter of minutes on our 100% digital platform and from the comfort of your home. It truly is becoming the new way to buy insurance.

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