What is constructive total loss in two-wheeler insurance 22nd February 2023
Whether you own a two-wheeler or a car, you should always ensure that you know everything about its maintenance and insurance. Getting insurance for your vehicle is of utmost importance. It protects your vehicle from severe damages by giving you compensation and solves third-party disputes.
However, just getting insurance for your vehicle is not enough. You also need to check out the various additional services offered by the insurance. This way, you can choose the most comprehensive insurance for your 2 wheeler. You must also inquire about all the essential terms relevant to your insurance. One such term is a constructive total loss. Although the term sounds complicated, it is not.
This article will help you to understand various aspects of a constructive total loss.
What is a constructive total loss?
You will likely file a claim for your 2 wheeler insurance only when your vehicle has suffered severe damages. Once you have filed a claim, the insurance company will inspect all the damages and reimburse the amount accordingly. Either you will get cashless compensation or money for the repairs. The damage is assessed well, and only compensation for the damages is provided.
If the vehicle is in dire need of minor repairs or servicing, the insurance company will reimburse that. It can also refund the amount for the replacement of bike parts. However, reimbursement only occurs after all the deductibles are assessed carefully. No matter the damage's severity, you will only get compensation up to the Insured Declared Value or IDV. You will not get any claim money that exceeds the IDV value.
There is also a major catch here. For instance, your two-wheeler undergoes irreversible damage. In such a case, the bike will be beyond repair. The insurance company can then declare it as a total loss. In other words, if the repair cost for the vehicle far exceeds its value, it results in total loss.
It is said that when the repair cost is more than 75% of the IDV, it is impossible to reimburse it. The constructive total loss takes place here.
Let's assume that your two-wheeler gets stolen. Then what will happen? In such a case, your insurance company will reimburse you for the IDV of your vehicle. The claim for theft of your bike will be treated as a total loss claim. The reimbursement amount will be sans the deductibles and depreciation.
How do you apply for a constructive total loss claim?
Now that you are familiar with constructive total loss let's look at the various steps to file a claim. They are:
● Go to the official website of your insurance company
● Look for the claims process tab or page
● You will see blanks to fill in your information
● Provide all the necessary information carefully
● After that is done, verify the self-inspection of your bike through the link sent to your mobile number
● A surveyor or inspector may be sent to get your vehicle inspected. Cooperate with them
● Once everything is done, you can submit all the required documents and forms
These easy steps can get you a total claim from the comfort of your home. You need to keep all these things in mind before you file a claim for your 2 wheeler insurance under constructive total loss. Once you give the correct information and abide by the guidelines, you can access the claim amount.
Click HERE to buy 2 wheeler insurance to protect your motorcycle from unexpected damages.
Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.