All You Need to Know About Theft Cover For Car Insurance
A comprehensive car insurance will generally cover vehicle theft and the cost of repairs incurred from break-in damages. But it comes with an additional premium and when the policyholder makes a theft claim, the sum insured will be equal to the value of the stolen car of the policyholder.
Vehicle thefts have become quite common in India and are prevalent in all cities. A stolen car is hardly recovered, putting the vehicle owner through tremendous financial hardship. Not all insurance policies render cover for stolen vehicles. A third party vehicle insurance policy will cover only damages due to a road accident. But a comprehensive car Insurance policy covers personal accident damages and car theft as well. It also has many add-ons such as No claim bonus protection, depreciation cover, etc.
Some comprehensive car insurance policies will offer a daily allowance for transport when the car is stolen. The allowance can be used to hire a vehicle for the daily commute. And some policies also cover theft of accessories under a no-claim bonus.
How to File a Claim if The Car Is Stolen?
A comprehensive car insurance policy can be of tremendous help, in case the vehicle is stolen. To get the maximum benefit out of the insurance, it is important to file a claim. The step by step process of filing the claim for a stolen car is as follows,
1. File a Complaint with The Police Department
This is the most important step and has to be performed immediately after finding out that the car has been stolen. Early filing of the FIR with the police eases the claims process with the insurance company and also enhances the likelihood of the vehicle getting recovered soon.
2. Inform The Insurance Agency
The Insurance firm should be intimated regarding the theft of the car immediately. Attach the FIR copy along with the claim form if possible. But it is not mandatory at the time of informing the company and should accompany the claims form.
3. Inform The Regional Transport Office
Informing the Regional transport office regarding the theft of the car will help to protect self from any criminal claims if at all the vehicle was used for any criminal activities. While the information the RTO office, will be required to submit the registration certificate of the vehicle, a copy of the FIR, a copy of the driver’s license, and the claims form.
Documents to Be Kept Ready Before Claiming
Before submitting the claim to the insurance company, the following documents are to be kept ready for a hassle-free claims process.
- Copy of the First Information Report from the police department.
- Copy of the Registration Certificate of the vehicle
- Copy of the Driver’s license
- Policy Document
- Filled and signed claim form
- Road tax receipt
- Original car keys
- Duly filled and signed RTO transfer papers
- NOC form from the financer, if there is an ongoing car loan.
The stolen car is considered a constructive total loss. Getting the complete reimbursement, equivalent to the amount insured is possible only with the ‘return to invoice’ add-on. In the absence of this rider, the final reimbursement will be the current market value of the car. But, it is important to have the car insurance updated and complemented with all required add-ons to deal with any eventualities.
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.