What is Theft Insurance in India?

Theft insurance is an insurance policy that protects against burglary, robbery and other kinds of thefts. This insurance compensates the insured from loss incurred due to theft. While theft includes all acts of stealing, burglary refers to illegally taking someone else’s property by forcibly entering a closed premise.

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A theft at home, shop or office can cause huge financial losses. You can cover the risk of theft in your premises with a theft insurance policy. In India, incidences of theft are quite common. And to cover up that a theft insurance policy is important. However, theft and burglaries are two separate things. There is separate cover for theft insurance and burglary insurance plans.

To file a claim for theft you need to furnish proof of non-violent and unforceful attempt into the premises. Whereas, a burglary involves ‘forceful and violent entry’ into the premises in order to conduct the loot.  

There are plans that offer both theft and burglary cover as well.

While purchasing a theft insurance policy, there are certain things that one needs to be aware of.  Read in detail about the coverage, add-on benefits, limitation and the amount of sum insured.  You can make or break a plan by choosing the riders.

A theft insurance policy will cover the following various risks:

You May Also like to Read: 7 Questions You Should Ask About Burglary Insurance

Coverage Provided in a Theft Insurance Policy

Firstly, read the policy terms and conditions before buying a theft insurance cover. While reading the policy documents you will know its features and the risks that are covered by the policy-

  • You can buy a theft insurance policy to cover theft-risks for your house and offices.
  • Any loss or damage that is caused to the premises during theft is also covered by the theft insurance policy.
  • The cost of the items that are stolen from your premises will also be compensated by the insurer
  • The cost of the theft insurance premium is determined on the basis of the claim history, nature of items/stocks in the premises and security measures that are available at the premises

Limitations of a Theft Insurance Policy

Every insurance policy has some limitations. And a theft insurance policy will not offer compensation for the following items or you will need to buy it as an add-on cover.  The limitations may vary from one insurance provider to another -

  • Precious metals such as silver, (gold, silver, etc.)
  • Cash
  • Involvement of family members or items that were stolen by them
  • Stealing of share certificates is also not covered
  • Things that were robbed by any of the employees
  • Things that were robbed by housemaids
  • Theft during riots, war, strikes, natural calamities, and terrorist activities

If you want to claim for items or stocks whose value will vary as per the market conditions, then you should do that using a claim proposal form.

Under the following conditions, your theft insurance provider can invalidate your claim-

  • Theft conducted on the premises that were left unattended
  • Theft conducted on the premises that were not properly locked
  • Premises where security is not maintained
  • Forged theft to claim benefits from a theft insurance policy
You May Also like to Read: Burglary, Theft & Additional Covers in Home Insurance

Tips to Reduce the Premium

The cost of the premium is decided on the basis of the risk associated and also the preventive measures taken by you:

  • Installment of safety devices will help you reduce the cost of the insurance premium and also will enhance your security
  • Theft alarm can be installed at the premises to get avail discount on the theft insurance premium
  • Installation of fencing will also help in this regard
  • CCTV cameras in your premises will also help you to avail discount on the premium

Types of Theft Insurance Policies that You Can Select 

There are different types of coverage that insurance companies provide. You can choose a declaration policy, standard policy, or a policy that offers the features of both standard and declaration. You can also buy a theft insurance policy to cover different stocks located at various places.

Things to Consider When Filing a Theft Insurance claim

When lodging a claim it is imperative to present complete information to the insurance provider:

  • Take note of all the losses that occurred on the premises.
  • You should reserve the contracts and receipts of every expense incurred on getting new products and protecting the property.
  • If you can keep a recording of the phone calls that you made to you insurer that will also help.
  • Digital record and documents can also be used while lodging a claim. They enhance safety and security by reducing the possibility of tempering with the evidence.
  1. What Kind of Policy Should You Buy?

    You can buy a theft insurance policy to get compensation for the valuable items and stocks at market price. And if you do not want to pay much premium you can opt for higher deductibles. But this would mean a reduced compensation amount at the time of claim.

    And if you want all the items to be covered you can buy a comprehensive theft insurance policy. By opting for an optimum policy you can get restoration cover for items stolen and property damaged to its original state.

  2. Always Compare Theft Insurance Plans?

    It is always a good idea to read the online reviews and understand the different features of burglary insurance policies provided by different insurance companies in India. You can find a plan that works the best for you and most of your needs and requirements.

    Keep in mind that the sum insured amount will be equal to the market value of the items lost and property damaged. It will be calculated on the basis of the current replacement value of items. Theft insurance offers compensation for expenses towards betterment, wear & tear, and obsoleteness. Hence, you can easily recover the maximum amount possible with an adequate theft insurance cover.  


Theft insurance is imperative for households as well as small or large-scale businesses as it will reimburse for the loss or damage that took place within the premises of your house or business. You have the option to select from various types of theft insurance policies or Home Burglary Insurance policies provided by the top insurance companies in India. This way you can enjoy your peace of mind and also protect your family members and other belongings in your house or office from any possible theft and related consequences.

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4.8 October 09, 2022
Amazing Customer Support
I am using a fire insurance policy from policybazaar and experienced amazing feedback from them in claim settlement. I have a sports merchandise shop that caught fire last yearI raised a claim which was resolved within a few days without any hassles.
4.8 October 08, 2022
Helpful Support
The support team of Policybazaar is really helpful and prompt. They solve all your queries fast. Would definitely recommend Policybazaar for purchasing insurance .
4.8 October 07, 2022
Extensive Cover
Got a fire insurance policy for my shop and it was really extensive with so many features. Purchased it from Policybazaar without paying any commission fees. Great coverage.
4.5 October 06, 2022
User Friendly Website
We deal in the cotton industry and suffered a huge loss last year because of the fire. We were looking for insurance to safeguard us financially from any such incident in the future. We landed on the policybazaar website and bought fire insurance. Their website is well managed and gives all the necessary information.
4.8 October 05, 2022
Plans Are In Budget
Had to purchase a fire insurance which should be in my budget as I run a very small store. Got a lot of affordable plans on Policybazaar and purchased the one that suited my budget. All plans are in budget and with so many features.
4.3 October 04, 2022
Covered My Shop
I have a shop of garments and it caught fire last year in which I lost items worth thousands. Purchased a fire insurance from Policybazaar and now I feel really relieved that it would financially cover my shop in such circumstances.
4.3 October 03, 2022
Faster Claim Settlement
A part of my warehouse having thousands of material caught fire. Luckily I had a fire insurance policy that I could claim and received compensation from them. It was such a relief. The claim settlement team at Policybazaar is helpful and really quick.
4.5 October 02, 2022
I have a warehouse of clothes and was planning to buy a fire insurance policy to cover my material from unwanted fire. Got a really affordable plan from Policybazaar with some really great features.
4.5 October 01, 2022
Budget Friendly
Wanted to cover my crockery shop from fire and was searching for an affordable plan. Found a great plan at Policybazaar which suited my budget.
4.5 September 30, 2022
Instant Purchase
Wanted a fire insurance policy for my crockery business and could purchase it instantly from Policybazaar. The process was quick instant and very easy.