Car Theft Insurance Claim: File A Claim For Stolen Car

Cars are an expensive investment, and having your car stolen can be a severe emotional and financial blow. However, with a car theft insurance claim, you can ease this financial burden and focus on replacing your dream car.

Filing a claim for compensation for a stolen car involves a few simple steps. By following these steps carefully, you can recover from the financial loss of your car as soon as possible.

Reliance General Insurance extends a very simple and user-friendly claim settlement process for car theft and insurance claims.

Here is everything you need to know about a car theft insurance claim.

Car Theft Insurance: Does Car Insurance Cover Theft?

Car theft insurance refers to a car insurance policy that protects you against the financial loss of your car’s theft. If your car is stolen, this coverage repays the Insured Declared Value (IDV) of your car minus applicable deductibles if your stolen car cannot be recovered.

Does A Separate Car Theft Policy Exist?

There is no separate policy that offers insurance claims for stolen cars. Theft will already be covered under your comprehensive or own damage car insurance policy.

However, do note that a car theft insurance claim is only possible under an own damage or comprehensive plan. It does not apply to third-party car insurance policies.

The compensation for stolen cars will be applicable only if you follow the car theft insurance claim process diligently.

What Is The Car Theft Insurance Claim Process?

• Step 1 - File an FIR (First Information Report)

As soon as you see that your car has been stolen, you must report the theft to the nearest local police station. File the First Information Report (FIR) at the station and ensure that you provide complete details of the incident, including the date, place and detailed description. A copy of this FIR is required to file the auto theft claim.

• Step 2 - Claim Intimation

After filing the FIR, the next important step is to inform us about the incident. You can contact us in any of the following ways to notify us of the claim.

• Call us on our paid helpline number - +91 22 48903009
• Log in to our Reliance Self-i App

Ensure to notify this claim within 24 hours of theft.

• Step 3 - Contact the RTO

After filing the FIR, you must contact and inform the RTO where your car was registered. It is important to fill out specific forms to record the details of the theft. This will ensure that the stolen vehicle is not re-registered with the RTO.

• Step 4 - Get the Non-Traceable Certificate from the Police

If the police are not able to find your car, they will issue the Non-Traceable Certificate. Make sure you collect this report as it is a prerequisite to file the car theft and insurance claim.

• Step 5 - Submit the Required Documents

Gather the necessary documents (listed in the next section), including the FIR, Car Insurance Policy and Non-Traceable Certificate, to submit the claim with us.

• Step 6 - Surveyor’s Inspection

Upon registering the claim with us, we will assign a surveyor to investigate your claim. They will examine the case and verify your documents. Please ensure you cooperate with the surveyor for a smooth claims process.

• Step 7 - Claim Settlement

Based on the surveyor’s inspection report, we will examine and process your car theft insurance claim. If it is approved, you will receive the amount in your bank account.

Documents Required For Car Theft Insurance Claim

Why Is It Important To Have Car Theft Insurance?

• Increasing Theft Cases - India has always reported a high rate of car theft cases, especially in urban areas.
• Financial Protection - A car theft can result in extensive financial loss. With coverage for car theft and insurance claims, you can tackle this financial stress effortlessly.
• Ensures Quick Recovery - If you have carefully followed the car theft insurance claim process, your claim will be settled promptly.
• Peace of Mind - If you are sufficiently covered for car thefts and their financial losses, you can take your car and enjoy your drives anywhere with peace of mind.

How Much Can I Claim For Car Theft?

A lot of people believe that they can get full compensation or the entire purchase amount of the insured car in the event of theft. However, this may not always be the case.

A full refund of your car’s purchase price is applicable only if you have the Return-to-Invoice add-on cover included in your car insurance policy. If you have this cover, you will receive an amount that is equal to the purchase amount or the car's invoice.

But if you do not have this add-on, you will receive compensation based on the current market price of the car, adjusted to depreciation. It will be mentioned as the Insured Declared Value (IDV) in the policy. This IDV, minus any applicable deductibles, will be your actual compensation for the car theft insurance claim.

Now, if the car is only a couple of months old, you will receive a higher claim amount as the IDV will be higher. But if the car is about 3-4 years old, the current market price of the car will be lower. The company will deduct the depreciation amount per the standards issued by IRDAI.

Here is a sample illustration. Let us assume the current market value of your car is ₹10,00,000, the depreciation applicable is 20%, and the deductible is ₹20,000. The calculation of the IDV and car theft insurance claim settlement are as follows:

How Long Does It Take To Settle A Car Theft Insurance Claim?

The entire settlement process for a car theft insurance claim can take 3 - 4 months or even longer. It depends on when the police issue the Non-Traceable Certificate and you submit all the required documents.

What Are The Possible Reasons For Car Theft Insurance Claim Rejections?

Auto theft insurance claims can get rejected for various reasons and are subject to specific policy conditions. Some of the possible reasons for auto theft claims being denied are:

• Incorrect or Inaccurate Information - Providing incorrect information about car theft to raise a false claim can lead to a rejection.
• Delay in Claim Intimation - It is important to inform us within 24 hours of the incident to register the claim. While you submit the documents later, the intimation shouldn’t be delayed.
• Mismatch in the Information - If there is a mismatch between the details you have provided and the documents submitted, the car theft insurance claim can be rejected.
• Missing Documents - If you have not submitted any of the documents required for the insurance claim for the stolen car, the claim will be rejected.
• Negligence - If you have parked your car negligently in a theft-prone zone or have not made any efforts to avoid the theft elsewhere, the claim can be rejected.
• Not Provided the Car Keys - If you are not able to provide the original car keys, the car theft insurance claim process can lead to rejection.
• Expired Car Insurance Policy - If your car insurance policy is expired and the coverage for theft is not active, you cannot file a claim. It will lead to rejection.
• Using Private Cars for Commercial Reasons - If it is found that you have used your private car for commercial purposes, your claim will be rejected.

Factors To Consider While Filing A Car Theft Insurance Claim

• Policy Terms and Conditions - Understand the car insurance policy terms and conditions and the car theft insurance claim process before filing a claim.
• Collect all the Required Documents - Be aware of all the important documents required and ensure to collect and submit them promptly, especially the FIR and the Non-Traceable Certificate.
• Car Loan - If you have an outstanding car loan, the compensation will be paid directly to the financier, and you will be responsible for covering any remaining amount.
• Third-Party Car Insurance - Insurance claims for stolen cars do not apply to third-party car insurance plans. It is available only with your own damage and comprehensive car insurance policies.

What Happens If Your Stolen Car Is Recovered?

In case your stolen car is recovered, there are two possibilities.

• If Your Car is Recovered Before the Claim Settlement - In this case, you will not be eligible for any auto theft claim amount. However, if your car sustains damages during the theft, we will cover the applicable repair expenses.
• If Your Car is Recovered After the Claim Settlement - In this case, you will have to inform us immediately after the recovery, and we will suggest further steps.

Consequences Of Not Having A Car Theft Insurance

• Extreme Financial Loss - Without the option for insurance for your stolen car, you will not be able to recover from the extreme financial loss.
• Added Financial Stress - In addition to the financial loss, you may face the burden of purchasing a new car, clearing any outstanding car loan (if applicable) and dealing with the police investigation for the theft.
• Increased Repair Costs - If your car is recovered but damaged, you will have to bear the repair expenses out of your pocket.
• Loss of Convenience - If you have been using your car for daily commuting or frequent long-distance travel, you will face significant travel challenges.

How Does Comprehensive Car Insurance Benefit You In Case Of Theft?

Comprehensive car insurance plans can benefit you in two ways if an incident is related to theft.

• In Case of Theft - In case of theft and total loss, you will receive compensation for the stolen car up to the IDV minus applicable expenses.
• In Case of Damages Incurred During an Attempt to Theft - In case of damages suffered during an attempt to theft, we can pay for the repair expenses.

What Should You Do In Case Your Car Theft Insurance Claim Gets Rejected?

If your auto theft claim is denied, you can contact us in any of the following ways to inform us and convey your concerns.

If you are still not satisfied, you can contact our Nodal Officer for Grievance Redressal at rgicl.grievances@relianceada.com.

Click here for more information on Grievance Redressal.

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Frequently Asked Questions About Car Theft Insurance Claim

1. Can I claim insurance if my car is stolen?

   Yes, you can file a car theft insurance claim under your own damage or comprehensive car insurance policies if your car is stolen.

2. Is car theft covered under a third-party insurance policy?

   No, car theft is covered only under own damage and comprehensive car insurance policies and does not apply to third-party insurance policies.

3. What should I do if my car gets stolen in my area?

   The first step is to inform the police and file an FIR. Next, inform us about the car theft insurance claim and the RTO about the incident.

   Wait for the Non-Traceable Report from the police and gather the necessary documents to submit the claim. We will investigate your theft case and verify your documents to process the claim.

4. How does theft insurance work?

   Theft insurance compensates you for the Insured Declared Value (IDV) of your car minus applicable deductibles in case of theft. It ensures this financial protection, provided you submit the necessary documents, such as the FIR and Non-Traceable Report.

5. What is IDV in car insurance?

   IDV refers to the Insured Declared Value of your car in car insurance. It is calculated based on the current market value of your car accounted for and subtracted for its depreciation. It is the maximum claim amount that you can expect from your car insurance policy in case of total loss or theft.

6. What happens to my No Claim Bonus if I file an auto theft insurance claim?

   Your No Claim Bonus gets terminated if you file any claim, including a car theft claim.

7. Will the premium for my car insurance policy increase if I file a car theft claim?

   Yes, claims history is also a significant factor that impacts your car insurance premium. Therefore, your car insurance premium is subject to an increase if you file a car theft claim.

8. What happens to my car loan if my car gets stolen?

   If you have an outstanding car loan, we will settle the amount directly with the financier. Any remaining balance will be your responsibility to settle and clear the debt.

   On the other hand, if any amount is left after settling the financier, it will be paid to you.