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If your car is stolen then you should know these important things

Car thief

A car insurance policy is mandatory in India. Compared to the helplessness these days, almost everyone is buying a car insurance policy of choice. After all, due to an emergency such as an unfortunate accident or any damage or loss to the motor vehicle, while driving on the road, a good car insurance policy provides protection. But what if your car is stolen? You must file a claim for car insurance!

Car theft is a significant problem that troubles almost every city in India. Delhi reported major incidents of car theft. According to Delhi Police records, in the year 2016, the number of occurrences of car theft was 36,702, which increased to 39,080 in the year 2017 and it is continuously increasing. And in Mumbai, ten car theft incidents occur daily. And most of the stolen cars are not recovered, causing considerable losses to the car owners.

How much will the insurance company pay?

If it is not recovered, the insurance company will have to pay an amount equal to the monetary value of your stolen car. In this situation, only individuals with a comprehensive car insurance policy can get coverage. Your insurer will not pay anything without a comprehensive car insurance policy.

So, if your car is stolen, how will you file a claim? Police and insurance companies have to be informed. You will be taken through the process by one of their representatives. The stolen cover must be insured under a comprehensive car insurance policy, including accidental disasters, third-party insurance, theft or fire cover, as well as risks from natural disasters.

If the complaint is not filed timely, it can also be canceled. Here's an example:
After a few weeks, my friend's car theft claim was rejected. The reason for the cancellation was a late notification to the insurer and the police after his car was stolen. Also, there was a discrepancy in supporting documents submitted by him. Due to a lack of knowledge on his part, the insurance company rejected his claim. It left him in a sad state.

If the surveyor found that you had left your car windows open or it was not adequately locked while the car was parking, it would be canceled. 

Furthermore, if you buy a used car and have not transferred it to insurance documents in your name, the policy will be invalidated and any claim submitted in this regard will be rejected.

If your car is stolen, here is a quick overview of the car insurance claim process to help you get timely compensation:

File an FIR: You have to submit the First Information Report (FIR) of the policy as soon as possible. It is one of the most critical stages. Go to the nearest police station and file an FIR as soon as you get the information about the theft. Do not forget to take this step as it is a pre-requisite.

Intimate Your Car Insurance Company: After the FIR is lodged, you should inform your car insurance company about the theft. Each motor insurance company follows its procedure and has its own set of formalities claiming theft. Ensure that it is within the specified time limit.

Notify Transport Office: As per the rule, the nearest (Regional Transport Office / RTO) should also be informed about the theft. Otherwise, you will have to transfer documents and other papers from them.

Car theft claims form: You should also contact the company's customer service center to request a claim form. Relevant information includes auto identification, policy number and time, date and details of the accident.

Submit Documents: Submit a copy of your car's registration certificate, a duly signed claim form, the first two paged policy documents, a driving license, a police FIR and a theft notice letter to the Regional Transport Office.

Approval: Once the police submit a final 'no traceable report' and your claim are approved, you need to transfer the RC of your stolen car in favor of the insurance company. You will also have to hand over all duplicate / original car keys and also provide an inquiry letter to the insurer.

Reimbursement / Compensation: You will also have to submit the original invoice and payment receipts of the repair work to the car insurance company. Reimbursement will be made according to the amount accepted by the surveyor in the document and payment will be made within seven working days.

For each claim, the claim document may vary from insurer to insurer. For car theft, you would need:
  • Xerox of driving license
  • Car insurance policy document
  • Xerox of RC book
  • Copy of original police FIR
  • Duly filled car theft claim form
  • RTO papers/forms like Forms 28, 29, 30 and 35
  • You must also have original car keys.
Things to remember
Apply for a no-trace report: The police will provide you with a no-trace report / untrained car report that your insured car is untraceable. It may take up to a month to issue this report. This is an important document and there is a high probability that if this report is found to be missing, your claim request will be rejected.

You will need to obtain a duplicate RC book directly from the Road Tax Officer's office.