Is Your Car Insured under Theft Cover?

By SiliconIndia   |   Tuesday, 22 January 2019, 09:13 Hrs
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Is Your Car Insured under Theft Cover?



Car theft is a major issue, especially in metro cities. Even 90% of theft cases in metros are unreported. Only 6-8% lodge legal FIR with the police. As per the recent survey of Safety Trends and Reporting of Crime 8% of Delhites have been victims of theft and this is one of the highest figures among the four metropolitan cities in India.



This alarming statistic indicates the urgency of getting under the safety blanket of motor insurance. Even having vehicle insurance is mandatory by law for the obvious reason that mishaps happen without prior notice. With car insurance, you are well-assured financially against the damages caused to the vehicle. No vehicle can be driven on the roads without insurance. That is why at the time of buying a car, you must have to buy car insurance, at least the liability insurance.



But if you reside in an accident-prone area or where the cases of theft are quite common, you must opt for Comprehensive policy.



What is the Importance of Comprehensive Policy?



Comprehensive car insurance is the ideal choice as it insures the vehicle for any kind of loss. The insurance coverage is also extended to the pillion riders as well. It covers the damages caused due to natural calamities such as fire, lightning, and floods, explosion, landslide, storms, fire, hurricane, typhoon, very heavy rains shower, frost and hailstorm, cyclone, rockslide and shock damage due to an earthquake.



The other type insures the vehicle against the damages due to man-made calamities such as accident by external means, strike, riot, burglary etc. The policy comes with an in-built personal accident cover as well that assures financial safety to the insured family in case of accidental death or disability. It also offers protection against liability arising out of an accident causing damage to the property of a third party, death or injury.



Above all, this policy also covers the loss of theft. So, if you are concern about the safety of your vehicle, you must opt for a comprehensive policy. However, only the right type of insurance policy comes with the maximum benefits. You can use car insurance calculator to check whether a policy is suitable for you or not. It helps you compare car insurance plans on basis of various parameters. Only the right plan will add you with the much-needed financial support.



However, all these benefits seem valid only if you claim right. Especially, when it is a theft claim.



Only Smart Claim leads to Smart Insurance Coverage



One of the most unwanted situations in your life is losing your prized possession. You must have invested a huge amount and now you have lost it.



You are saved if you have car insurance! But do you consider mastering the claim process? If not, be prepared to face the ugly truth. Your insurer may reject the claim.



Let’s imagine a situation-



You own Bharti AXA car insurance. When you claimed your insurance for the damages caused by the recent flood, your insurer had rejected the request on the ground of incomplete documentation. Hence, knowing about insurance claim is an essential part of your car insurance.



So, following these simple steps, you can ensure claiming your policy for theft. Let’s start:




  • Immediately lodge an FIR with the policy and inform the insurer about the loss. There shouldn’t be any delay. Moreover, you will have to inform the transport department as well.


  • Register a claim by calling on the toll-free number. The representative will assist you with the claim related formalities.


  • Collect all the relevant documents and submit without a fail. Right documentation is essential to ensure a fast and successful settlement. Each claim requires a definite set of documents. In case of a theft claim, you will require submitting the below documents:


    • The original copy of police FIR


    • Copy of the vehicle insurance document


    • Duly filled and signed a claim form


    • Driving License copy of the owner


    • Copy of the Registration Certificate of vehicle


    • RTO formalities are to be completed as per requirement





Apart from the aforementioned documents, you will require submitting a no-trace report by the police. No-trace report is required if the vehicle is untraceable. This document is a must for claiming your car insurance. However, it takes a month or more to get this report. Moreover, the car keys are to be submitted to the car insurance company.



Understand the Final Print



You must have realised the sheer necessity of reading the fine print of the policy document in order to experience a smooth claim. Filing your car insurance claim never be so complicated only if you approach right.



However, your responsibility doesn’t seem to end here. After submitting the claim with relevant documents, it is your duty to track the claim status regularly. A surveyor will be appointed to inspect the vehicle, in a case in case it is recovered. If the vehicle is non-traceable, a report is provided and based on which the insurer compensates the IDV of the vehicle under a total loss category.



The Other Side of the Coin



The odds of a recovered vehicle are not in your favour. If your stolen vehicle is recovered with damages, then the insurer will compensate the repair costs after subtracting the deductibles. The worst happens, if the vehicle is recovered after the claim is settled under total loss, the insurer can own the vehicle. The only option left for you to buy it back and own the possession again.



Final Word!



Car theft is something that you never wish to encounter. Cars can be easy prey for a professional thief like bikes. The potential money made by selling the parts has increased the theft cases at a rapid pace. Moreover, the recovery rate is also considerably low. Given that, having a comprehensive policy that covers theft is a good option, where you are compensated for the loss.



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