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Will Your Car Insurance Policy Compensate You for Your Stolen Vehicle?

By Juhi Walia
27 September 2022, 4:41 PM

Car theft and burglary can be quite traumatic for anyone. You invest your hard-earned money in your dream car, and it’s an asset that demands huge investment. If you don’t have appropriate car insurance, car theft can be quite taxing and stressful. The liability or third-party car insurance online plan only covers injury/death to third parties or damage to their property but does not cover car theft or damage to the insured vehicle.

If you wish to protect yourself financially against the theft of your vehicle, you must subscribe to the comprehensive car insurance online plan. Even though a standalone own damage car insurance policy covers theft, the absence of mandatory third-party liability cover in it makes a comprehensive policy legally viable. Yes, a comprehensive car insurance policy covers theft and other vehicular damages besides protecting you against third-party claims arising due to an accident involving your insured four-wheeler. Besides theft, the comprehensive plan also covers you and your vehicle against damages arising out of natural or man-made disasters, fire, irreparable damage, and liability insurance. 

The insurance company reimburses the IDV value minus depreciation costs if the car theft claim is approved. If your car is stolen, report it immediately to the police and contact your insurer to find out if you are covered.

What’s Covered Under a Car Insurance Policy?

What do you need to do if your car gets stolen? The first thing to inspect is the kind of car insurance online plan you have invested in. Leading insurance companies offer three types of insurance policies: liability-only policy or third-party car insurance plan, standalone car insurance plan, and comprehensive car insurance.

Which insurance plan provides coverage against theft?

  • Third-party Insurance- No
  • Comprehensive Insurance- Yes
  • Standalone Own Damage Insurance - Yes

In case of car theft, the comprehensive car insurance policy coverage can include the following:

  • Car theft and bodily injury
  • Additional amortisation coverage, additional NCB coverage, etc.
  • Some offer daily compensation if your car is stolen
  • Your policy may also provide for a replacement/rental vehicle within 24 hours of your vehicle being stolen.
  • Some policies offer coverage for partial theft of accessories.

Return to Invoice Add-on Cover

You can also buy return to invoice car insurance add-on cover for an additional premium and attach it with either a standalone or comprehensive car insurance policy. The best part is that you get covered for the whole invoice price you pay to buy a car. Usually, a car insurance policy does not reimburse road taxes, registration charges, etc. You can get that covered by buying a return to invoice add-on cover, which is available if the vehicle is stolen or damaged beyond repair.

The Procedure for Filing a Claim with Your Insurance Provider if Your Car is Stolen

In case your car gets stolen and you have invested in a comprehensive car insurance plan, you earn coverage against car theft. You need to follow the below-mentioned steps to file a claim against car theft:

Step 1 - Submit an FIR

As soon as you learn about your car theft, you must immediately inform the police. You benefit from an early filing of an FIR as it helps you have the claim accepted by the insurance company, and you have the authorities working on the search for your lost car.

Step 2. Inform the Insurance Company Immediately

Next, you must immediately inform the insurer about the theft, after which you must complete and sign the claim form. You need to attach the FIR when submitting the form. You don’t need the FIR when notifying the insurance company; however, it is mandatory to attach the FIR when submitting the car insurance online claim application form.

Step 3. Inform the RTO

It is suggested that you notify the Regional Traffic Office (RTO) of the theft of your car to protect yourself from criminal activities committed using your vehicle. This way, you are on the safe side in case your vehicle is involved in an accident or used for illegal activities. You will need to provide a copy of the FIR, a duplicate of your driver's licence, vehicle registration certificate (RC), and the claim application form.

Step 4. Keep the Following Documents Handy

  • Copy of the police FIR
  • Copy of the RC of the vehicle
  • Completed and signed application form
  • Copy of the driving licence
  • Copy of the policy documents
  • Original car key
  • Signed RTO transfer documents (Forms 28, 29, 30)
  • If there is an outstanding car loan, NOC and Form 35 from the lender

Step 5 – File the claim

Make sure your car insurance is up to date to cover you against any eventuality. After you have diligently followed the steps mentioned above, you can get a claim for car theft on your comprehensive car insurance online plan.

Step 6 - Obtain an NTC from the Police

This is a non-traceable certificate issued by the police stating that your stolen vehicle cannot be tracked. Only after obtaining the NTC can the insurance company process your claim.

Reasons for Rejection of the Car Insurance Online Theft Claim

Here are the reasons your car insurance provider may reject the car theft claim.

  1. Not informing the insurance company on time
  2. Poor documentation or misleading/false information
  3. If the car was being used for a purpose not defined within the policy, for example, a private car was being used for a commercial purpose.
  4. Negligent driving
  5. Not filing a proper policy complaint
  6. Not complying with the RTO forms


Car theft is not a small thing, and it can take a toll on your financial and emotional well-being, especially in the absence of a lucrative car insurance online policy. If you attach a standalone car insurance plan with your third-party car insurance policy, or if you simply buy a comprehensive car insurance online plan, you are eligible for reimbursement of the IDV minus depreciation if your car gets stolen. For coverage beyond IDV, you can opt for a return to invoice add-on cover. And if you buy the return to invoice Always purchase car insurance considering such options and benefits.

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1. To avoid financial constraints, if your car gets stolen, you must invest in the right kind of policy that can cover such a loss. Keep reading to learn more about it.

The first thing is to analyse the kind of car insurance online policy you possess. Ensure you have a comprehensive car insurance plan for coverage against theft and various other damages. Then you must immediately inform the insurer, file an FIR with the police, inform the RTO, obtain an NTC from the police, and then claim the loss

2. Which kind of car insurance online plan covers theft of a car?

A comprehensive car insurance online plan and a standalone own damage plan cover and reimburse the insured for theft.

3. How is the claim amount decided in case of car theft?

The claim settlement amount in case of car theft depends on the insured declared value (IDV) after making deductions based on the car depreciation value. To be on the safer side and to get a claim amount that equals the car invoice amount at the time of purchase, you can buy the return to invoice add-on.

4. How can the insured contact the RTO about car theft?

If the car has been stolen, the insured needs to fill out forms 28, 29, and 30 after approaching the RTO, informing it about the theft of the vehicle and sharing vital details of the car with it.

5. Does the insurance company increase the cost of the insurance premium after settling the claim for car theft?

In case of a car theft claim settlement, the NCB of the insured becomes void, and the premium may increase based on this. 

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