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I am going through this right now. My bike has 19000 kms. The shop told me the chain has kinks in it causing premature failure of the rear wheel bearing. I still have the stock chain. Looking into if my chain should have been replaced as part of the recall. My bearing hasn't failed but i need to replace the chain to prevent damage.
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! Well that's a new one. I think your Dealer is a bit odd to come up with that theory.
Unless the rubber cush blocks in your hub are completely knackered, I can't see a possible way a kinked chain could ever cause wheel bearing issues.
If a chain isn't kinked enough to prevent riding without terror, there's no way it could impart enough snatchiness to overcome the cush drive, and bugger the bearings IMHO.
If your cush blocks are knackered, then combined with kinked chain links, I can see maaaaaybe effecting the bearings, but I would have thought the resulting clunking lurching enough to prevent someone from wanting to leave their driveway, let alone ride with it.
I've had very, very shagged cush blocks, and chains on death's door for ages, ( like soooo stretched and worn, that I had to remove links to be able to adjust the chain again ) (don't do this at home, kids ) and never, ever, had a rear wheel bearing issue. Even on my hooligan race bike, that I did constant wheelies on.
Not saying it's impossible, but it doesn't seem like a logical diagnosis, to me.
*edit*
I would think that the bearing failure was simply due to either lowest bidder, cheaper quality bearings, and/or insufficient grease at assembly, and/or slight moisture ingress.
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