The theft of your car can be very difficult to digest. It is hard enough to deal with the pain of losing something dear, but at the same time filing for an insurance claim to minimize the loss caused due to the theft of the car is prudent.
The following article offers you a detailed explanation about how one can get claim insurance under a comprehensive policy if the car gets stolen.
How Much Will Your Insurance Provider Pay If Your Car Gets Stolen?
The amount that the policyholder will recover, which is referred to as pay-out, is usually the Insured Declared Value (IDV) of the car as mentioned in the insurance policy document until and unless you have opted for a Return to Invoice Cover.
Can the Service Provider Reject Your Claim?
There are several reasons as to why the claim may be rejected by the insurer, such as -
- The claim has been made for an event that is not covered under the car insurance policy;
- There is the non-disclosure of vital information at the time of applying for the policy or at the time of renewal;
- The insured acted in a fraudulent/ mala fide manner;
- The policy has been cancelled and the claim has been filed thereafter;
- Due to the operation of an exclusion clause in the policy;
- If payment of premium has been missed or has not been paid on time leading to a lapse of policy;
- If the nominee details have not been filled or are not changed due to change in circumstances;
The claim must be processed by the insurer within 30 days and the rejection must be known by then. The insurer is provided an additional period of 90 days for further investigation if needed.
Additionally, if the insurer has not been notified on time and the FIR has not been filed about the car being stolen, then despite every other aspect of the procedure being followed properly, the insurer might reject the claim. For example, an intimation to the insurer about the theft of the car several months after the event has happened will result in outright rejection of the claim. Just like what happened with Arun as he informed his car insurance company after a month of theft. Hence, due to his negligence, his insurance company rejected his claim request hence he did not receive a single penny as compensation.
What is the Claim Procedure?
- File an FIR - This must be the first step that one does on learning that their car has been stolen. The FIR can be lodged in the nearest police station and get a copy of the same free of cost from the station.
- Notify your service provider - Use the toll-free number of the insurance company to contact them and inform them about the theft of the car. With this, the formal process of making the claim is initiated. Use this opportunity to learn about the due procedure that has to be followed.
- Inform the RTO - The law mandates that the car owner informs the nearest RTO about the theft of the vehicle. One must also transfer the documents and other papers from them.
- Fill the car theft claim form - Call the customer service centre and submit the claim form with all the requisite details filled in.
- Submit the documents - The FIR, policy document copy, etc must be submitted to the insurer. The policyholder is required to submit a special Non-Traceable Report from the police and a Section 173 CrPc Court order with the insurer.
- Get approval from the service provider - This has to be done by transferring the stolen car’s RC in favour of the insurance company. One will also have to turn in the car keys to the insurer.
- Get the reimbursement - Usually, the settlement process will be completed within a span of 7 days from the date that the claims were admitted by the insurance company. In circumstances where the car was leased or bought through a bank loan and outstanding payments remain, then the payment will be made to the financier of the car.
What Documents do you Need to Make the Claim?
The following documents must be submitted –
- Photocopy of the Driving License
- Car Insurance Documents
- Registration Certificate
- Non-Traceable Report
- Copy of FIR Filed
- Filled Claim Form
- RTO Papers such as Form 28, 29, 30 and 35
What is a No-trace Report?
This report is proof that the police believe that your car is untraceable. Usually, the issuance of this report takes nearly a month to come. The car insurance theft claim will not be processed in the absence of this report. On getting this report, one will have to get a duplicate RC from the road tax officer.
Conclusion with key takeaways
The loss of your car can be devastating. But following due procedure to recover at least the IDV of the car through the insurance claim settlement process can act as a balm to soothe your wounds.
Use the policy document to understand the procedure in detail and follow it with care to ensure that the process is completed at the earliest with minimal backlashes.