Vehicle Insurance Claim Process For A Stolen Vehicle

What to Do Immediately After Vehicle Theft

If you are faced with the unfortunate event of vehicle theft, remember that it is not the time to panic or lose hope. The first few hours right after the vehicle is stolen are critical for recovery and claim processing. During these hours, you have to stay vigilant and work proactively. Depending upon your insurance company and your policy, the steps to follow might differ a bit, but overall, here’s what you must do:

File a Police FIR:

The first thing to do is to file the first incident report (FIR) with the police. Go to the nearest police station, report the theft, and get a copy of the FIR.

Inform Your Insurer:

Your next stop should be your insurance company once you have filed the FIR with the policy. Notify your insurance provider with your policy number and vehicle details about the theft.

Report to the RTO:

The next authority you must inform about the theft is the Regional Transport Office (RTO). Submit a report to your local RTO to mark the vehicle as stolen.

Submit Theft Claim Documents:

Once you have informed all authorities about the vehicle theft, it will be time to file your claim request with your insurance company. All insurance companies have their claim forms, which detail the procedure, required information, and documents to be attached. Request your insurance company for the form, fill it out with accurate and up-to-date information, and attach all the necessary documents.

If you feel confused, you can request assistance or ask for clarification. Remember that if you provide wrong or incomplete information, miss documents, or file improperly, your claim can be delayed or even rejected. So, make sure you follow the instructions properly and file an error-free request. However, in the fear of filing an inaccurate claim, do not miss the deadline for filing the request, making it time-barred.

Wait for Investigation:

After informing the relevant authorities and filing a police complaint, it is time to sit back and wait. The police will investigate and identify the culprits before the claim is settled.

How Insurers Investigate and Settle Stolen Vehicle Claims

Once the policyholder has informed the insurance company about the theft and filed their claim, which is accompanied by various documents like the FIR and RTO reports, the insurance company conducts its investigation before setting up the claim. The insurance company does so to ensure that the claim filed is legitimate and is not filed with the intent to defraud the company. Once the legitimacy of the claim is established, the compensation is approved. Here is a general idea of how an insurance company investigates a stolen vehicle claim before settling it:

• The insurer assigns a surveyor to review documents and police reports.
• Verification with RTO and other agencies for vehicle records.
• Wait for the Final Police Report (Non-Traceable Certificate), which is usually issued after 30–90 days.
• If everything checks out, the insurer issues the IDV (Insured Declared Value) as compensation.

FAQs

How long does it take to settle a theft claim?

It usually takes 60–90 days, depending on how quickly the police issue a non-traceable certificate and how complete your paperwork is.

Can I claim theft if my policy is only third-party?

No. Theft claims are covered only under comprehensive insurance policies, not third-party plans.

What is the role of a non-traceable certificate?

It’s official police confirmation that your vehicle couldn’t be recovered. Insurers require this before processing the payout.

Do I get the full IDV as compensation?

You get the IDV minus deductibles and depreciation. The No Claim Bonus (NCB) may also be adjusted if eligible.

What happens if my vehicle is recovered after the claim is paid?

The insurer will either take possession of the vehicle or request a refund of the claim amount, depending on the policy terms.