In Ludhiana, Punjab, a traffic accident resulted in the death of the rider. The insurer HDFC ERGO denied the claim, claiming that the bike's engine capacity exceeded the engine capacity indicated in the insurance policy documentation.
Following the publication of this letter on Twitter, HDFC ERGO released a comment. According to the records filed, the insured died on April 19, 2020, owing to a serious head injury, which HDFC ERGO cited as a reason for denial. According to the plan's terms and conditions, the insured was riding a 346cc motorcycle, which exceeds the engine capacity and comes under the general exclusion clause 8. Any claim will be denied if the insured is wounded or dies while riding a motorcycle with a displacement of more than 150cc, as stated in the policy.
The HDFC ERGO name was not mentioned in the message. However, in response to live mint's inquiry, the insurer stated that the issue being discussed on social media is an old one, and the claim has already been paid to the insured. It's because in October 2020, the exclusion that existed in all of their plans was lifted.
In addition, HDFC ERGO promised that personal accident coverage is available to all policyholders, regardless of the bike's engine capacity. HDFC ERGO prides itself on having the industry's best claim settlement ratio and the greatest number of settled claims.
Indraneel Chatterjee, co-founder of Renew Buy, shed some light on what should be done if you find yourself in such a situation. It is critical for a customer to understand the advantages and clauses of an insurance policy before acquiring one. Because customers are more focused in the advantages, they often overlook the exclusions as well as the policy's terms and conditions, which are just as important as the policy's inclusions.
Since the occurrence, it is recommended that you do not acquire a policy without first understanding its terms and conditions, as this will assist you when it comes time to renew your insurance coverage. You can, however, consider moving to Sala Suraksha Bima, which was issued by IRDAI last year, to avoid any inconsistencies.
