Car Theft Insurance

Vehicle theft has been a significant concern in India and has increased by manifolds in the past few years. It has, in fact, increased by 2.5%. While Delhi ranks top in vehicle thefts, Mumbai comes second on the list. It is in situations like these that the role of car theft insurance becomes prominent. Read on to learn more about it in the section below.

If your car has been stolen and you don’t have the right type of car insurance plan, it can cause a deep financial burden. The Third-party Insurance Plan covers only third-party injury/death or damages to their property, but it will not cover car theft or damages to the insured vehicle.
If you want financial protection against car theft, you’ll need to purchase the Comprehensive Insurance Plan. The plan also covers other types of liabilities, such as damages due to natural or man-made calamities, fire, damages that are beyond repair, or accidents, along with third-party liabilities. 

Whether your car insurance policy provides coverage for thefts or not depends on the type of car insurance policy you have. While the third party only offers financial coverage against third-party injury/death or damages to their property, Comprehensive policy, on the other hand, covers your vehicle against damages/losses incurred by the insured vehicle.

Hence, for financial protection against vehicle theft, you must insure your car with the Comprehensive Insurance Plan. You also have the option to include valuable car insurance add-ons such as Return to Invoice (RTI) that pay the purchase invoice value in case of car theft or total loss. If the RTI add-on is not purchased, the insurance company, i.e., ACKO, will pay the Insured Declared Value (IDV), which can be lower than the invoice value as depreciation is considered.

In case of car thefts, the insurer will compensate an amount equal to the value of the car or the IDV declared. The insurer will pay if the vehicle is not recovered and you have a Comprehensive Car Insurance Policy. Moreover, when your car is stolen, you must file a car insurance theft claim and submit all the required documents, including the FIR.

Listed below are the documents that you need to raise a claim:

If the police is unable to trace your car, then they will issue the Non-traceable Certificate. This certificate is generated typically 30 days after the incident; please note that the time period may vary depending on the location. After the NTC, it might take 60-90 days for the insurer to generate IDV of the car. Overall, the complete process may take 3-4 months. So, raise the claim on time to avoid any further delays in claim settlements.

Some of the things to be wary of while raising a claim for car thefts include:

Thus, if your car has been stolen, you need to immediately file a claim to avoid delays in the claim settlement process.