I Have A Car Insurance Policy. Do I Still Need to Fear About Car Theft?

Motor Insurance policy that mitigates the financial losses in the event of any mishaps or accidents. The Motor Vehicle Act of India mandates every vehicle owner to have a car insurance policy. Many vehicle owners get puzzled wondering if they need to worry about their car theft, if they have a car insurance policy. One needs to know the types of coverages in a car insurance policy.

Coverages Under Car Insurance Policy

Car insurance in India offers two types of coverages broadly. First, third-party insurance policy and second, comprehensive car insurance policy. As per Motor Vehicle Act, 1988 any car running on road is mandated to have a Third Party insurance. A third-party insurance policy covers legal liabilities of the insured in case of damage to third party vehicle/property and bodily injuries in case of accident. But one should note that third- party insurance policy does not cover own damages and theft of the vehicle.

A comprehensive car insurance policy, on the other hand, is the one that along with third-party liabilities also covers damages occurred to you or your vehicle on account of accident, mishaps, natural or man-made calamities, thefts, etc. It also comes with other add-on features like accessories cover, zero depreciation, etc. Hence, in case of any unfortunate event or theft, your insurance service provider will reimburse you with the amount of loss incurred due to the theft of your car.

How much money will be reimbursed by your insurance provider if your car gets stolen?

The amount of reimbursement varies from policy to policy. It is highly advisable to always go through the terms and conditions carefully to learn about the reimbursement amount in case of theft.

Most insurance providers reimburse an amount equivalent to the current market price (IDV) of the vehicle.

Can we receive the actual invoice amount of the car as a reimbursement?

Some insurance providers give “Return to Invoice” (RTI) an add-on cover under comprehensive insurance policy. If you have opted for this add-on cover at the time of buying the policy, then you will be reimbursed the amount equivalent to the invoice amount of the car. RTI Add-On makes your policy slightly expensive.

How to claim in case your car is stolen?

One needs to have a comprehensive car insurance policy to make a claim in case of car theft.  Follow the below-mentioned steps if your vehicle gets stolen:

Immediately inform the following entities in case of theft:

 

• Police Station: The first and foremost step would be to lodge an FIR in the police station situated in the correct jurisdiction. The copy of the FIR is mandatory to claim damages
• Insurance provider: It is mandatory to inform your insurance provider about the theft of your car. They will initiate the settlement process as soon as you inform them. Hence, it is advised not to delay in taking the necessary step as the settlement procedure might take so time to complete
• Regional Transport Office (RTO): You need to inform the RTO office where your vehicle is registered. Informing the RTO is mandatory to make sure the stolen vehicle does not get re-registered with new details.
• Once all the documentation is found satisfactory and accepted by the insurance company, they process it further for settlement

What are the mandatory documents for claiming against theft?

The following documents need to be furnished to your insurance provider for claiming damages against theft:

• • Copy of the policy document
  • Duly signed claim form
  • Registration Certificate
  • Copy of FIR
  • Keys (Both Original) of the vehicle
• On later stage, the following is to be arranged
  • NTC - Non-Traceable certificate duly attested by court authorities
  • RC Cancellation acknowledgment from RTO
• Submit the photocopy of the FIR and the documents mentioned above, along with the car keys and a non-traceable certificate from police, to your insurance company

Car theft is one of the major issues in a country like India. Hence, we should always exercise the utmost care in keeping our vehicles safe. Our car is always dear to our heart as we buy it with our hard-earned money.