header Car Insurance

Advisor's Tip: How to file a Car Theft Claim?

By Vikas Chandra Das
21 July 2022, 11:46 AM
advisors tip how to file a car theft claim

Ask any car owner about their greatest struggle and you will know that finding a safe parking spot these days is a huge challenge! Whether you are out shopping with your family or snacking at a cafe with a friend, if you are a car owner, you are constantly surrounded by the stress of your car getting towed or stolen. If numbers are to be believed, in 2014, out of the 22,000 motor vehicles that were reported missing only approx. 2,322 were recovered. This means your car could be at greater risk!

But don’t worry, your car insurance policy covers car theft. 

Since prevention is better than cure - let us understand how you can file a claim with your insurance provider against theft.

Benefits of Car Insurance

A comprehensive car insurance policy widens the scope of coverage. In the case of car theft, you can make use of your car insurance policy to secure your position financially. This allows you to stay calm and handle the condition effectively without panicking. 

Here are the benefits of Comprehensive car insurance:

  • Covers losses or damages arising due to theft or burglary
  • Covers losses or damages arising due to unforeseen events like riots, floods, etc.
  • Personal Accident Cover
  • Third-Party Liability Cover

Steps to Claim in Case of Car Theft

1. Lodge an FIR 

As soon as you find out about the theft, head to the closest police headquarters and file for an official complaint. This complaint is known as the First Information Report or FIR. It is best to lodge an FIR as soon as possible. This is the most important step since it lays the ground for a reasonable claim request.

2. Inform the insurance company 

Once you have filed an FIR, you will need to notify your insurance provider. You can call your car insurance company insurer on the toll-free number which is available on their website. After making a note of your basic details, your insurance provider will issue a unique Claim Reference Number against your complaint. You can use this number to track the progress of your claim settlement. 

3. Notify the RTO

It is also mandatory to inform your local RTO regarding the theft of your car. Once you have let the officials know, they will provide you with the necessary documentation including the RTO transfer papers to continue the process of claim settlement.

4. Complete the claim documentation process 

After you collect all the associated documents, you will need to forward them to your insurer with the duly filled claim form. The following document checklist will help you fast-track the claim settlement process for car theft -

  • Copy of the original FIR
  • Copy of the original policy documents
  • Duly signed claim form
  • Copy of the owner’s driving license
  • Original keys of the car
  • Copy of the car’s RC, and
  • RTO transfer papers duly signed along with the necessary forms (form 28, 29, 30 and 35)

5. Submit No-trace report 

Your claim settlement is incomplete without a no-trace report. Just like the name suggests, it is an official report confirming that your car cannot be traced. This document can be collected from your local police station. 

PRO-TIP: The police would need at least 30 days to provide a No-Trace report from the day the incident was reported. 


Car theft is both financially and mentally disturbing for anyone. Having a valid car insurance policy and knowing how to car insurance claim protects you from the economic stress of the situation. It is important to know the inclusions and exclusions of your car policy before buying. Investing in add-on covers such as Return to Invoice is also advisable for new cars, especially for those living in metros and crowded cities.


1. What about car loan and hypothecation in case of car theft?

When you buy a car on loan, your car is hypothecated in the name of the lender. This hypothecation can be confirmed in your car's RC book. 

Scenario 1: If you have paid off the loan 

Imagine you have settled the last monthly installment of your car loan, your bank will send you the necessary closing documents within two weeks. These closing documents comprise a no-objection certificate (NOC) which clearly states that there is no balance amount due with respect to the loan. And now, with such valid documents, you are eligible to file a stolen car insurance claim.

Scenario 2: If you have not paid off the loan

Imagine your car is stolen before clearing the loan, you will need to file a claim with your insurance provider. However, the owner of the vehicle on your car’s RC book will still be the lender. You will need to repay the complete loan before claiming any compensation from your insurance provider.

2. What if the car is found after the claim is approved?

In the case of theft, the claim settlement process goes through multiple checkpoints. This makes the process tedious and time-consuming. However, your insurance provider wants to be absolutely sure about the case before they release the money to the insured.

Once your claim is approved, the ownership of your stolen car is transferred directly to your insurer. In an unusual case of the stolen car being recovered, your insurer is now the lawful owner of the car since it has already been paid for.

3. How much money does the insurance company pay back in case of car theft approval?

In case of a theft claim, it is important for you to submit the original invoice and payment receipt to the insurer. The reimbursement amount will depend on the IDV of your car and the surveyor’s report drafted within seven working days.

Car Insurance banner
Car Insurance

Starting at only ₹6 per Day*

Enter your details to buy Car Insurance
By proceeding you agree to Terms & Conditions
Proceed without car number