How to claim insurance on a stolen car?

IamCheated.com Research Team | August 02, 2018  7:37:pm

Motor vehicle theft in India has been increasing each year. According to statistics, more than four vehicles are stolen every hour in the national capital and the number of car thefts increased from 36,702 in 2016 to 39,080 in 2017.

There are many reasons why this happens. One of the main reasons is the shortage of parking space and the general practice of parking vehicles on the side of roads.

The sad thing is many people are not aware on how to make a claim from the insurer in case their car is stolen and because of this, they do not take advantage of insurance plans. If you have a comprehensive motor insurance plan for your vehicle, you can make a claim at the insurer if your vehicle is stolen.

Comprehensive motor insurance is optional, but make sure you avail this plan as it covers third party liability as well as own damage (Damage your vehicle suffers in an accident and hospitalization costs for injuries you suffer). If your car is stolen, your insurance company will pay the insured declared value (IDV) of the car. But, the comprehensive policy does not cover the gadgets and accessories installed in your car. For this, you need to avail a separate add-on insurance cover.

Availing third-party motor insurance is mandatory in India and many citizens assume it will cover theft as well. But, this is not true. You can make a claim on the stolen vehicle, only if you avail comprehensive motor insurance cover.

If your car is stolen don't panic. Go ahead and make a claim as soon as possible. If you delay making the claim there are high chances of your claim getting rejected. In this blog, we will discuss various steps involved in making a claim on a stolen car.

1. File an FIR

The first thing you should do when your car is stolen is visit the nearest police station and lodge a First Information Report (FIR). You should not delay lodging the FIR as this is the foundation for making a claim. Do not forget to collect the copy of the FIR as it has to be submitted while making a claim.

2. Inform your insurer

After filing an FIR, the next step is to inform your insurer on the theft. The insurance company will have its own procedure that will be kick-started as soon as you inform them. Some insurance companies have made it mandatory to inform them within 48 hours from the time of the incident. So make sure this is done.

3. Inform the Regional Transport Office (RTO)

As per laws, you should inform the Road Transportation Office (RTO) on the theft. So do not forget to notify the RTO.

4. Collect all necessary documents

After notifying the relevant departments regarding the theft, you need to collect the required documents to make a claim. After collecting all the documents you need to submit those to your insurance company along with the claim form.

The documents required to be submitted to the insurance companies are:

1. The original FIR copy,

2. Copy of the policy documents

3. The duly signed claim form

4. A copy of the driving license

5. Copy of the vehicle’s RC

See Also: Reasons Why Car Insurance Claim Gets Rejected

5. Acquire the no-trace report

No-trace report is also called as untraced vehicle report. This document has to be received from the police station stating the vehicle cannot be located. The insurance claim will not be processed without this document. Police might take around a month to prepare this report.

On receipt of this document, the insurance company directs the policyholder to transfer the stolen vehicle in the name of the insurance company. The policyholder has to transfer the registration certificate through forms such as form 26, 28, 29, 30 and 35 along with original keys, car purchase invoice and a letter of subrogation to the insurer.

After you inform the insurance company regarding the theft, they will appoint investigators to trace your car. The process may take 60 days. If your car is still missing, it will take about 90 days for the insurance company to generate the Insured Declared Value of your car.

See Also: Mistakes That Leads To Rejection Of Auto Insurance

Reimbursement:

You will be paid the amount approved by the surveyor’s report within 7 working days. In case you are still paying the EMI on your car loan, the insurance company will pay back the loan.

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