Buying a car involves a great amount of money, so you invest a big part of your savings into your vehicle. If the car gets stolen, you suffer a considerable financial loss. Unfortunately, instances of car theft are on the rise. Per reports, about 274 cars are stolen every single day!
Does auto insurance cover theft?
Fortunately, it does! If you have a comprehensive car insurance policy, you get insured under auto theft insurance coverage for a stolen car. The car theft insurance policy compensates for the financial loss suffered, and you can buy a new car with the claim amount. While car thefts are covered, you have to follow the claim process to get compensation for your loss. Let’s understand how to file a car insurance claim.
How to file a car insurance claim for theft?
To make a claim under your car theft insurance policy, follow the steps mentioned below.
• Inform the police and file an FIR
This is the first step in the claim process. You must inform the local police authorities of your area and file an FIR detailing the theft. The FIR will contain the car registration number, make, model, variant, and other details. This FIR will be required when you file the claim with the insurer.
• Inform the insurance company
Next, inform your insurer about the theft and register the claim. You will have to fill out and submit a claim form regarding car theft. You can download the form from the insurer’s website or get it physically from the nearest branch office.
• Inform the Regional Transport Office (RTO)
The Motor Vehicles Act of 1988 states that it is mandatory to inform the RTO if there’s a theft. So, the next step will be intimating the RTO, wherein you must fill out and submit the relevant forms. The RTO Officer will sign these forms, which will be needed when filing your insurance claim. You will also get transfer papers for your car, which you should submit with your claim-related documents.
• Get a non-traceable report from the police
After filing the FIR, the police try to locate your car. If they cannot do so within a specified period, they issue a non-traceable report. This report certifies that your car is untraceable and you are eligible for the insurance claim.
• Claim documentation
The insurance company needs a set of documents to process your theft claim. These documents include the following:
• The original car theft insurance policy document
• The original RC of the car
• The original sales invoice and receipt of road tax
• Claim form, filled and signed
• FIR
• Copy of the intimation that you submitted to the RTO
• Transfer papers received from the RTO
• Subrogation letter
• Indemnity bond
• Original set of keys of the car
• Final non-traceable report from the police
Once these steps are taken and you submit the required documents, the insurance company starts processing your claim. The company verifies the theft and the coverage and then pays the claim amount.
Why can your claim get rejected?
While you get theft coverage in auto insurance, there are instances when your claim can get rejected. Some of the reasons for car theft insurance claim rejections include the following:
• You did not submit the required documents
• You do not inform the insurance company and file the theft claim in a specified time
• Your coverage was not active when the theft occurred. This happens when the policy is not renewed on time and the coverage lapses
• The theft was due to negligence
• You do not submit both key sets to the insurance company. This shows that your car keys were accessible to the thief due to negligence, which is why the car was stolen
• The company detects a fraudulent claim
• You only have third-party coverage on the car. Third-party plans do not cover thefts
In case of a claim rejection, find out why the claim has been rejected. If your policy was lapsed or your coverage was insufficient, you cannot do anything about it. However, you can talk to the insurer to allow your claim in case of missing documents or late filing. You can also file a grievance with the company’s grievance department or the insurance ombudsman.
It is better to take precautionary measures to protect against possible thefts. Installing anti-theft devices, being careful to lock your car when you park it, parking in a safe spot, etc., are common practices you can follow. However, despite your best efforts, if your car is stolen, use the theft coverage in auto insurance. Follow the aforementioned steps and get your stolen car insurance claim settled.
