It is not at all surprising that motorcycle ownership is booming in the country - from daily commutes navigating the traffic to delivery riders hustling across the lanes, motorcycles are a vital part of our lives. However, this inclination underscores the need for a reliable motorcycle insurance policy, as it is designed to protect you financially in the event of an accident, theft, fire, or damage.
However, many riders are surprised when their insurance claims are denied. Motorcycle insurance is a legal contract between the insurer and the policyholder that includes clear terms and conditions. If these rules are violated or not followed, the insurer may legally reject the claim.
Also Read: How to get Motorcycle Insurance in the Philippines: A step-by-step guide
Therefore, understanding how insurance works is your first line of defence.
Motorcycle insurance in the Philippines: Understanding the basics
The basics -
- In the Philippines, CTPL (Compulsory Third Party Liability) insurance is mandatory by law.
- CTPL provides coverage for third-party injuries or death; it does not cover damage to your vehicle.
- Comprehensive insurance is optional and provides wider protection (against theft, fire, flood, and accidental damage).
- Claim rejections often occur when riders confuse CTPL coverage with comprehensive coverage.
- It is essential to know your policy limits to prevent false expectations.
- The Insurance Commission regulates providers and protects policyholders; it helps you understand your rights and responsibilities.
Also Read: Why motorcycle riders need both CTPL & comprehensive coverage
Motorcycle insurance claim rejected: Top reasons
Image from FreepikIncomplete or incorrect documentation
One of the most common reasons motorcycle insurance claims are denied is poor paperwork. Providers rely heavily on documentation to validate claims. Here are some things that can go wrong in terms of documentation -
Missing police report: For accidents, theft, fires, or vandalism, a police report is often required by the provider. It serves as proof of the incident's authenticity; therefore, it is essential to obtain a police report promptly.
Errors in claim forms: Even mistakes in your claim form, like wrong date, mismatched plate number, missing signature, etc., can delay or even cancel your claim. Therefore, make sure to double-check every detail before applying.
Also Read: 6 Essential documents you need when filing a motorcycle insurance claim in the Philippines
Late filing of the claim
Timing matters a lot in the world of insurance. A policy clearly states the timeframe for filing a claim after an incident. Most providers require claims to be filed within 24 to 48 hours of an accident.
Note that late filing of the claim gives solid ground to the insurer to deny your request, even if the accident is real.
Policy lapses & non-payment of premium
If your policy lapses due to missed premium payments, the coverage will stop automatically. Some riders assume a single non-payment won’t affect their coverage and will continue to receive coverage because of prior payments. But unfortunately, even a one-day lapse can void coverage at the time of the accident.
Misrepresentation & non-disclosure
Remember, honesty is critical when filing a claim, as even a minor misrepresentation can lead to denial.
Incorrect personal or vehicle details: Failing to disclose prior accidents, providing an incorrect engine number, or concealing claims can result in rejection. Remember, every provider checks records and information very carefully, and inconsistencies are considered red flags.
Unauthorised motorcycle modifications
Young, fun-loving Filipino motorcycle riders are open to modifications, including custom exhausts, engine upgrades, and frame modifications. While there is nothing wrong with it, in insurance, policies require you to disclose changes. Note that undeclared changes can increase risk and give insurers grounds to deny the claim.
Image from FreepikUnauthorised use of the vehicle
Insurance policies clearly state that the insured vehicle is for personal or commercial use. For instance, if the policy is for personal use but you use the motorcycle for ride-hailing, delivery, or similar purposes, your claim may be rejected. It is always recommended to match your policy to your actual usage.
Driving without a driver’s license
Riding a motorcycle without a driver’s license is one of the primary causes of claim rejection. If the rider involved in the accident does not have a valid license, insurers can deny the claim - even if the accident was not your fault.
Reckless or driving under the influence
Accidents involving the usage of illegal drugs, drunk driving, or reckless behaviour are usually specified under policy exclusions.
Unreported or delayed accidents
Failing to inform your insurance providers immediately can hurt your case. Insurance providers expect prompt notice so that they can investigate while the evidence is fresh.
Fraudulent claims
Policyholders who attempt to exaggerate damage or include a pre-existing issue are at risk. Adjusters are trained to spot inconsistencies, and any fraud can result in permanent denial or policy cancellation.
Wear & tear vs. accidental claim
Insurance covers sudden and accidental damage; it does not cover wear and tear. Claims for old tyres, worn brakes, and ageing parts are usually denied.
Also Read: 10 Powerful tips for faster motorcycle insurance claim approval in the Philippines
Practical tips to avoid claim rejection
Photo from Freepik- Provide honest and accurate information in all your forms to the adjuster.
- Report accidents immediately to the provider.
- Keep copies of receipts and documents.
- Pay the premium on time.
- Declare all modifications and vehicle usage.
- Read the policy carefully.
Bottom line
It is to be noted that by understanding why motorcycle insurance claims are denied, you’ll be empowered to avoid costly mistakes. By knowing the policy rules, keeping the documents complete, and acting promptly after incidents, Filipino riders can protect their investments and ride with confidence.
Note that insurance is not just a legal requirement; it is a safety net. Use it wisely, follow the rules, and you’ll be prepared when the unexpected happens.
Also Read: How to choose the best motorcycle insurance in the Philippines
FAQs
Q1. Is CTPL motorcycle insurance enough for a rider?
Ans. CTPL insurance only covers third-party injury or death. It does not cover motorcycle damage.
Q2. Can I still claim if the accident was my fault?
Ans. Yes, you can file a claim even if the accident was your fault. Given that the policy includes its own damage and exclusions do not apply.
Q3. How soon should I report the incident to the insurer?
Ans. Make it a point to report the incident as soon as possible; ideally, within 24 hours.
Q4. Do I need a police report for minor accidents?
Ans. Insurance providers accept minor claims without a police report; however, it is advisable to obtain one, as it will strengthen your claim.
Q5. Can an expired vehicle OR/CR affect my insurance claim?
Ans. Yes, an expired registration can be grounds for denial.
Also Read: Motorcycle insurance renewal made simple: Your most asked questions explained
