In most car insurance cover theft cases, the insurance company waits for the no-trace report from the concerned authorities before releasing the compensation amount. But this report shows that there are two types of insurance coverage available for a stolen vehicle. Know how?
A four-wheeler is a very important asset for home owners and its theft is a very sad feeling. In case of incidents like theft, the first question that vehicle owners have is whether their existing car insurance covers theft? The answer depends on the type of car insurance policy the vehicle owners own and its terms and conditions. In this article we will try to know in detail about four wheeler insurance and how to get insurance coverage if it is stolen?
Different types of car insurance policies are available in the market according to the different needs of the consumers. Such as third party motor insurance, self injury coverage, comprehensive car insurance policies; Plus a lot more. Basic third party car insurance offers limited coverage. It only covers third party liabilities, such as injury/death to a third party, damage to third party properties, etc.
What type of car insurance policy covers theft?
Two types of car insurance policies cover theft – a standalone own-damage policy and a comprehensive car insurance policy. Standalone OD cover covers loss (theft) or damage to the insured vehicle. However, this policy does not cover compulsory third-party liabilities or personal accidents for the vehicle owner-driver.
Comprehensive car insurance has different coverage options – such as car theft, damage to the car, accidental damage and natural perils as well as third party liabilities and personal accident cover for the owner-driver.
Additionally, car insurance also has many add-on provisions like zero depreciation, roadside help, consumption expenses and many more. A comprehensive car insurance policy has limits on the deductible and sum insured. Deductible is basically the amount the policyholder pays out of his own pocket for a claim. Coverage limits are the maximum amount the insurance provider will pay for a claim. It is also called Insured Declared Value (IDV), i.e. the prevailing market value of the car.
Does car insurance cover theft of personal items or luggage?
Leading insurers like Tata AIG offer an add-on called ‘Loss of Personal Belongings’ with their comprehensive car insurance policies. This add-on covers loss of personal belongings kept inside the car. However it may not include coverage for expensive items like laptop, watch, sunglasses etc. Make sure to read the policy document for covered items.
Does car insurance cover damage caused by storm?
Comprehensive car insurance provides coverage against accidents. Suppose the policyholder’s vehicle is damaged, and the vehicle owner enjoys coverage against vandalism as per the terms and conditions of the policy. In that case, the compensation amount will be released by the insurance providers. However, vehicle owners will have to take necessary steps to request for a claim.
Steps to be taken in case of car theft – Filing an insurance claim
In case of car insurance coverage if the car is stolen, below are the steps that need to be taken.
Step 1: Filing the First Information Report (FIR)
The first step in case of vehicle theft is to inform the authorities about the incident. It is the right of the vehicle owner to lodge a first information report about the incident. This is not only an essential document to receive the compensation amount, but it will also help the authorities trace the vehicle. This should be done within a few hours of the incident. Delay in filing FIR may result in rejection of four-wheeler insurance claim.
Step 2: Notifying the Insurance Provider
The next step after filing the FIR is to inform the insurance provider about the incident. Insurance providers have a set of procedures to follow depending on the policies they offer.
Policyholders can access the website and fill the insurance claim form. It is necessary to submit a copy of the FIR along with the claim form. To make the claims processes hassle-free, Tata AIG has a team of 650+ claims experts.
Step 3: Notifying the local transport authority
Another important step to follow is to inform the regional transport authority in your area about the incident. This will help in avoiding re-registration of vehicles in other names. Also, if any vehicle is involved in any illegal activity, it will help the authorities to trace the vehicle.
Step 4: Submitting all required documents
Also, to receive the claim amount, policyholders have to submit a list of documents to the insurance providers on time. These documents are:
Car Insurance Policy Documents
copy of FIR
Copy of vehicle registration certificate
Copy of driver’s license
Duly signed and completed claim form
Copy of RTO documents
original vehicle keys
These documents help the insurance providers in handling the paperwork. After verifying all these documents and policy clauses, the insurance companies will release the compensation amount. It is best to ensure that the car insurance policy is up to date when filing the insurance claim.
Step 5: Report No Trace
In most car insurance cover theft cases, the insurance company waits for the no-trace report from the concerned authorities before releasing the compensation amount. This report specifies that the stolen vehicle cannot be found. Police usually issue this report and it is issued after a thorough search of the vehicles from the date of the incident.
Relationship between car insurance theft cover and anti-theft devices
Insurance providers have recognized anti-theft devices such as GPS tracking devices, car alarms, kill switches, etc. as risk mitigating tools. These devices help in increasing vehicle security against vandalism, theft, vandalism etc.
Keeping all this in mind, insurance providers offer significant benefits to vehicle owners who have anti-theft devices installed on their vehicles when purchasing a car insurance policy. These benefits are in the form of discounts, lower premium rates etc.
It is necessary to buy third-party car insurance
It is mandatory to purchase third-party car insurance as per the Motor Vehicles Act. But it is important to know that only standalone own-damage cover and comprehensive car insurance policies protect against damage caused by theft or vandalism.
Before purchasing an insurance policy, it is best to compare car insurance based on inclusions and premium amount.
It is best to choose a comprehensive car insurance policy as it provides coverage against various scenarios like personal accidents, man-made disasters etc. Additionally, it has various add-ons to enhance the safety of the vehicle depending on the choice of the policyholder, such as roadside assistance, zero depreciation cover, etc.