Theft Cover in Bike Insurance: All You Need To Know
Published On Mar 11, 2021, Updated On Mar 13, 2021
Theft is a reasonable fear. Bike insurance covers this kind of threat and provides coverage for your bike’s safety. You should be aware of how to apply and get this coverage if your bike is stolen. Time is of the essence during these kinds of situations.
One of the key protections offered by a bike insurance policy is coverage against theft. However, whether your bike insurance policy provides theft coverage or not depends completely on the type of policy opted for. It is important to note that in case of theft of a bike, the loss is considered a complete loss of the vehicle and thus the Insured Declared Value of your bike is paid as compensation to you by your insurance provider. IDV is the maximum amount that an insurance provider agrees to pay and corresponds to the market value of your bike at the time of purchase of the insurance policy.
Which Type of Bike Insurance Provides Coverage Against Theft?
- Standalone Own Damage: Since this type of plan provides coverage for all own-damages sustained by the bike, theft of the bike is covered under it.
Third-party: Under this cover, the insurance company insures the policyholder against the third-party liabilities. Thus, no theft cover is offered under this policy.
Comprehensive: Covers damage caused to third-party as well as own damage. Thus, theft of the bike is covered under this type of bike insurance policy.
How To File A Theft Claim For Your Bike?
In the event your bike is stolen, certain steps require to be followed before the bike insurance company reimburses you for the stolen bike.
The process to file a claim just in case your two-wheeler is stolen is listed below:
File an FIR (First Information Report) at the closest police headquarters. This is to be done as soon as you realize the 2 wheeler has been stolen.
Inform Insurance Provider - The insurance company is to be told as early as possible. Call the corporate on their dedicated helpline and supply details regarding the incident also because of the vehicle number and your two-wheeler policy details.
Inform RTO (Road Transport Authority) - For all theft cases, the RTO is to be told, from where you'll need to collect the transfer papers.
Submit Your Required Documents- After notifying the relevant authorities and police, you're required to submit an inventory of documents to the insurance firm on the idea of which they claim is going to be registered. The documents are listed below:
Copy of the vehicle’s registration certificate.
Copy of the policy document.
Copy of the policyholder’s driving license.
Original FIR document.
Claim settlement form, duly filled in and signed.
RTO transfer papers.
Vehicle’s original keys.
Bike Theft Claim Settlement Process
Once the documents are submitted, the insurance process will process them and verify them. The police will issue a ‘no trace report’ attesting that the stolen vehicle couldn't be traced. It is just one occasion the police fork over this document that the insurance firm will process the claim. Based on the documentation, the insurance firm might prefer to hire an investigator to seem for the stolen vehicle. Once the investigator confirms the vehicle can't be located, the insurance firm will take a choice on the claim filed and reimburse the IDV (insured Declared Value) amount or pay the loan (if applicable).
The IDV amount would depend upon the premium amount paid. The lower the premium amount, the lower are going to be the IDV of the vehicle. However, it's advisable to pay a rather higher premium and maintain an IDV which will cover the value of your two-wheeler within the event it's stolen, especially if you reside or work in theft-prone areas.
In case the bike isn't recovered, the insurance company pays you an amount capable of the insured declared value of your vehicle. Hence, you must usually choose a much better IDV. However, if your bike is recovered, the insurance company will not give you a payout.
In the case of theft of a vehicle, you need to register an FIR (First Information Report) at the nearest police station and inform your insurer. The police will try to trace your vehicle until 90 days after which the police will issue a non-traceable report for your vehicle. The matter will then proceed to a court of law which will issue a Non-Objection Certificate (NOC). Post NOC issuance, the insurer investigates its side to trace the vehicle. In case the insurer is not able to find the vehicle, the claim settlement process gets initiated.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.