Step-by-Step Process for Car Theft Insurance Claim

Car theft insurance is a feature that comes bundled with comprehensive car insurance plans or own damage coverage provided by insurers. Depending on the policy terms, it provides you with a payout if your vehicle gets stolen. To get compensated for the loss of your vehicle due to theft, you must inform your car insurer about the incident and raise the claim.

It is always recommended that you inform the insurance provider about your car theft immediately to avoid any delays or discrepancies in approval. However, the claim process involves a few crucial steps, such as contacting the local police, informing your Regional Transport Office (RTO), etc.

Read on to explore and learn the key steps to claim theft insurance in India in case your insured vehicle is stolen.

What is the Claim Process For Car Theft Insurance?

Losing a car to theft in a parking lot or a crowded market creates panic and confuses you about your next steps. However, if the insurance covers theft of your vehicle, you must try to stay calm and follow the steps below:

File an FIR at the Local Police Station

As you discover that your car has been stolen, the first and most crucial step is to visit the police station in the area from which it has been stolen. You must lodge a First Information Report or FIR at that station. The police will ask a few questions; answer them and lodge a report. Get a copy of the FIR, as it is a legal document for theft and needed for a claim.

Inform the RTO

As per the Motor Vehicle Act, 1988, you must inform the Regional Transport Office (RTO) where your car is registered about its theft. You will need to fill out specific forms to record the details of that theft. You may also need to submit a FIR copy and vehicle-related documents. You must collect some key documents from the RTO to submit to the insurer.

Inform Your Insurance Company

After you have filed an FIR and informed the RTO, you must inform your insurer about the incident. You may file it online through their app or web portal, or you can do it offline (e.g. through a phone call). Insurance companies have their own process for car theft insurance claims, and you must inform them immediately after the incident of theft.

Submit Documents to Your Insurer

Your insurer may ask for some key documents to process the claim for your stolen car insurance. You must curate copies of the following documents along with the claim form to place a seamless claim request:

1. Provide your car’s policy number and copies of your car insurance documents.

2. Submit a copy of that FIR you lodged with the police.

3. Produce a copy of RTO papers or forms like 28, 29, 30 and 35 (if your car was financed).

4. Submit a copy of your updated Driving Licence and a copy of your car’s Registration Certificate (RC) book.

5. The insurance company may ask you to submit the original and duplicate car keys (if available). 

6. You may need to confirm details of your stolen car, its make, model, or any distinguishing features, aligning with the details in your car’s insurance papers.

7. You may also need to describe the time, surroundings, and other circumstantial details if required.

8. Prepare any other relevant documents if your insurer asks to complete the process of the claim request.

Investigation by Your Insurer

Once you have completed the above steps and provided the documents as asked by your insurer, they will initiate an investigation to proceed. This process generally includes the verification of your FIR copy, RTO forms and other documents. They may also interview you or any eyewitness to confirm that your reported theft occurred as claimed.

Loss Assessment and Claim Settlement

As you filed an FIR, the police will begin their own investigation. If the police recover your car, immediately inform your insurance company about the required repairs and submit the bills. Once your insurer verifies the submitted documents, they will reimburse an amount based on the Insured Declared Value (IDV) as per your policy.

If it is untraceable, obtain the non-traceable report from the police and submit it to your insurer to get a settlement as per the car theft insurance terms and conditions of your policy.

Also Read: Does IDV Matter in Car Insurance?

Things to Keep in Mind to Avoid Claim Rejection Scenarios

As you note the steps to claim car insurance for a stolen car, you must also keep in mind some factors to avoid claim rejection. This is because a theft of a car you bought with your hard-earned money drains you financially and mentally, and following proper claim procedure is important to recover costs:

Immediately Report the Incident

If your car gets stolen, you must inform your insurer immediately after you lodge the FIR and inform the RTO. However, insurers may allow for a time window for this information (as per the insurer’s terms). Although the time window may differ between insurers, delayed reporting may lead to claim rejection.

The Car Was Left Unprotected

If your insurer discovers you left your car windows down or doors unlocked during the theft, they may reject your car theft insurance claim. While it is always a good practice to double-check car locks and windows when you park your car, such a mistake may lead to further loss.

Non-Updation of Name on Insurance Papers

Especially if you bought a used car, you must transfer the existing insurance to your name on the insurance papers. If you have not done it and your car gets stolen, your insurer may invalidate the insurance. This leads to a claim rejection. Therefore, ensure that the right owner's name is mentioned in your policy document.

Discrepancies Found in Your Supporting Documents

While submitting the updated policy with the correct owner’s name is important, verifying the supporting documents is crucial too. Ensure that the scenarios you describe to the police and mentioned in the FIR, and the information about the incident you shared with your insurer, align. Discrepancies in RC details and other critical documents may lead to rejection.

Using a Private Car for Commercial Purposes

Suppose an individual purchases comprehensive car insurance, and as per the policy, they agree that they will use the car for personal commuting. If they use the car for commercial purposes like carrying passengers or renting it out, it may breach the terms. An insurer may reject the claim if the theft happens while it was in use for commercial purposes.

Failing to Provide Two Sets of Car Keys

In terms of claiming car theft insurance, insurers may ask for both of the car keys (original and duplicate). If you have them, you must submit the car keys to your insurer in such a scenario. Failing to fulfil this requirement may lead to a claim rejection.

Also Read: How to Claim Motor Insurance and What Documents Are Required?

Conclusion

Car theft insurance offers valuable financial protection against the unexpected loss of your vehicle. If your car is stolen, promptly filing an FIR, informing your insurer, obtaining the required RTO documents, and submitting all necessary paperwork can help ensure a smoother claim process.

To stay prepared for such unforeseen situations, consider choosing a comprehensive car insurance policy from Bajaj General Insurance, which can help protect your finances and provide greater peace of mind on every journey.

Frequently Asked Questions

How do insurers provide car theft insurance?

You get car theft insurance from an insurer when you get comprehensive car insurance. If someone steals your vehicle, your insurer compensates you based on the current market value or the Insured Declared Value (IDV) minus any deductibles. Third-party liability plans do not cover theft, and therefore, to get this theft coverage, you must opt for a comprehensive plan.

What does the anti-theft in car insurance mean?

The anti-theft in car insurance is the installation of anti-theft devices in your car for more protection. Getting an anti-theft device installed in your car approved by the Automotive Research Association of India (ARAI) allows insurers to provide you with car insurance at a lower premium. You must enquire with your insurer about the availability of this feature.

Do I get claims against car theft if my policy is lapsed?

No, your insurer will reject your claim if you let your policy lapse as you fail to renew it on time. Therefore, you must set a reminder about premium payments or enable the auto-debit feature for timely deduction of premiums. Insurers allow for a grace period for renewal, in which you can renew your policy and continue coverage against car theft.

How long do I need to wait to get my settlement for car theft?

In terms of no trace of your car, it generally takes 30 days or more for the police to generate a no-trace report. Insurers may take 60 to 90 days to generate the IDV of your car, as the documentation, investigation and verification take time. The whole process may take up to 3 to 4 months, and you must be patient and keep in communication with your insurer.

What is subrogation in theft claims?

If your car stays untraceable and your insurer settles your claim according to the non-traceable report, the subrogation process may activate. It is the process where, after settling your claim, if your car gets recovered, your insurer obtains the legal rights to the stolen vehicle. It means the ownership (RC) is transferred to your insurer, making them its new owner.

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***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.