Stolen Car Insurance Claim Process: Step by Step Guide

A car insurance policy offers financial protection in an emergency, like an unforeseen accident, where damage or loss is caused to your vehicle while driving on the road. But can you raise a claim if your car is stolen? Yes, you can file a car theft insurance claim under your four-wheeler insurance policy. Read further to know about the stolen car insurance claim process.

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Importance of Car Theft Insurance

Car theft is a major problem that plagues almost every city in India. The capital city of Delhi reports a large number of car theft incidents. As per the Delhi Police records in the year 2020, the number of car theft incidents reported was 33,128 that increased to 36,177 in the year 2021 and it has been rising constantly.

On the other hand, in Mumbai, there is an incident of 10 car thefts on a daily basis. Moreover, most of the cars that are stolen in the city are not recovered, which causes a huge loss to the car owners.

This is where stolen car insurance can help car owners get compensation against the theft of their vehicle. With comprehensive car insurance, you can receive substantial compensation against theft or burglary of your car.

Moreover, with car theft insurance, you can also claim against damages sustained by your car due to burglary. For instance, damages, such as smashed windows, broken doors or damaged ignition locks, are covered under the car theft insurance policy.

How much does an Insurance Company pay for a Stolen Car?

The car insurance company will compensate an amount equal to your stolen car's current monetary value, that is the Insured Declared Value or IDV, if it is not recovered. Only those who have an own damage or comprehensive car insurance policy can get coverage under this situation. Without these plans, your insurer will not pay anything in case your car is stolen.

In case your car has been stolen, you will need to file a car theft insurance claim. Firstly, you would need to inform both the police and the insurance company about the incident. One of the insurer's representatives will take you through the entire process.

Steps for Car Theft Insurance Claim Process

So, here is a quick run-down of the car theft insurance claim procedure to help you get timely compensation in case your car gets stolen:

1. File a Police FIR

   You must lodge a Police First Information Report (FIR) as soon as possible. It is one of the most crucial steps. As soon as you get to know about the theft, visit the nearest police station and lodge an FIR. Make sure to obtain a copy of the FIR. Do not forget this step as it is a prerequisite for raising a car theft insurance claim.

2. Intimate Your Car Insurance Company

   Once you have registered an FIR, you need to inform your car insurance company about the theft. Every motor insurance company follows its own process and has its own set of formalities for car theft claims. Make sure that this is also done within the stipulated time frame.

3. Inform the Transport Office

   As per the law, you also need to notify the nearest Regional Transport Office (RTO) about the theft of your car. Then, you need to collect documents from them that need to be submitted to the insurance company. Remember to have all the required documents for a successful claim settlement.

4. Car Theft Claim Form

   You also need to contact the insurer's customer service center and submit the claim form. The information that may be required includes car details, policy number as well as the time, date, and description of the incident

5. Submit the Documents

   Submit a copy of your car's Registration Certificate, duly signed claim form, and the first two pages of the car insurance policy documents to the insurer. You will also need to submit a copy of the driving license, the Police FIR and a theft intimation letter addressed to the Regional Transport Office. In case your car is found by the police, you will need to submit the original invoice for the repair work and the payment receipts to the car insurance company.

6. Claim Approval

   You need to transfer your stolen car's RC in the favour of the car insurance company once the police submit a final 'non-traceable report' and your claim is approved. You also need to hand over all the duplicate/original car keys and also give a letter of subrogation to the insurer.

7. Reimbursement/Compensation

   Once the car is declared non-traceable, the insurance company will issue your compensation. In case the car is found, reimbursement will be provided as per the amount that the surveyor approves in the report.

Documents Required for Car Theft Insurance Claim

Claim documents may vary from one insurer to another for different types of car insurance claims. Broadly, to raise stolen car insurance claim, you would need the following documents:

• Xerox of driving license
• Car insurance policy documents
• Xerox of RC book
• Original Police FIR
• Duly filled car theft claim form
• RTO papers/forms like form 28, 29, 30 & 35

Moreover, you should have the original car keys with you.

Reasons Behind Car Theft Insurance Claim Cancellation

There may be a few reasons why your stolen car insurance claim may get rejected. Take a look:

• A late notification to the insurer and the police after your car was stolen.
• A lot of discrepancies in the supporting documents that you had submitted.
• Lack of knowledge of the car insurance claim process may also lead to the rejection of your claim by the insurance company.
• The claim may also get cancelled if the surveyor finds out that you had left your car windows open, or it was not properly locked in the parking.
• If you buy a used car and haven't transferred it to your name in the insurance documents, the policy will be invalidated and any claim filed in this regard will be rejected.

Things to Remember While Claiming for Car Theft

Here are a few pointers that you should consider while claiming car theft insurance:

• No-trace report/untraced car report is given to you by the police stating that the insured car is untraceable. This report might take a month to be issued. Since it is a vital document, the chances are high that your claim request would be rejected if this report is found to be missing.
• You would also need to immediately obtain a duplicate RC book from the road tax officer's office.
• If your car was purchased on loan, then the insurance company will compensate the payout amount to the financer and you will need to pay the excess amount.

In a Nutshell

If your car gets stolen, you need to immediately file an FIR with the police and notify the car insurance provider. All this needs to be done without any delay. Only then you will stand a chance to successfully claim under your stolen car insurance policy. Hope the above-mentioned steps will enhance your knowledge regarding car-theft claims and if need be, you will raise a claim without any mistakes.