How to Deal with a Car Theft

Owning a vehicle is an expensive affair. Apart from the initial cost of purchase, there are several other costs associated with the vehicle ownership. This includes the cost of financing, insurance charges, taxes, and maintenance expenses. Hence, owning even one car can drain your bank balance quickly.

In spite of this, car ownership still remains one of the most cherished dreams of an average middle-class Indian. With the easy availability of car finance options, owning a car is now not such a far-fetched idea. Once you are in possession of your dream car, you should take the necessary steps to get it adequately insured.

The benefits of car insurance are many - It protects the vehicle from accidents, damages while in transit, and even theft. Much like the death and disability rider in life insurance, the personal accident cover in car insurance protects the

owner-driver of the insured vehicle from accidental disabilities and death.

What if your car is stolen?
After a strenuous days’ work, you are looking to get back home and run a few errands when you notice that your car is missing from the spot where it was parked. After the initial hysteria wears off, you should try to remain composed and come to terms with the situation. Try to remember as many details as you can about the area where you parked the vehicle. Run through whether it was parked at a ‘No-Parking’ zone, as this could mean that it was towed away. Once you have worked through the possible alternate reasons for the missing vehicle, you would have identified whether it was actually stolen or not.

In the event of a vehicle theft, there are several things you need to do immediately:

1. Report the theft to the police - The first thing to do is to contact law enforcement and report the stolen vehicle. You should also file an FIR for the same. Insurance companies will not honour a car theft claim unless it is accompanied by an FIR. You should recollect everything about the stolen vehicle and report it to the police. In case your vehicle has a GPS device, you should make sure that you highlight this point, as it can help the police track down your car faster. The details that you will be required to furnish are as follows:

a. Specific/distinct features of your vehicle
b. License plate number
c. Colour
d. Make, model, and year of manufacture
e. Vehicle identification number

2. Report the stolen car to the insurance company - The next step you need to take is to contact the insurer and report the car theft. In case you have taken a comprehensive car insurance policy, the theft of the vehicle will be covered under your motor insurance. Even if you do not have a comprehensive cover, you should report the theft to the insurance company. This will protect you from liability claims arising out of incidents that take place while the car is not in your possession. You will be required to provide the following information to the insurance company:

a. Contact details of your financing bank, if any
b. Description of the stolen car
c. Details on the last known location of the vehicle
d. A consolidated list of personal items that were in the vehicle at the time of theft
e. Place where all the keys of the vehicle are located

You should ensure that you report accurate information to the insurance company. Failure to do so many jeopardise the validity of the claim.

From the perspective of the insurance company, paying out the cost of the vehicle will be a large expense. So, the insurer first launches an investigation to check the validity of the claim. So, the FIR will be useful in reinforcing your stand. Keep in mind that any delay in reporting the theft to the police or the insurance company can be detrimental to the claim.

3. Report the car theft to the financing bank - If your vehicle was bought through a car loan, you will have to inform the financing bank about the theft. In this scenario, the insurer will pay the claim amount to the financing bank and you will not be liable for the payments. Your insurer will get in touch with the financing company for the smooth execution of the claim payout.

4. Report the car theft to the Regional Transport Office (RTO) - It is necessary to report the car theft to the RTO. You will receive the ownership transfer papers of the vehicle from the RTO.

Claim process

Most insurance companies have a waiting period for a car theft to be finalised. You should check with your insurance company on the timeframe for the same. You will also have recorded conversations with insurance adjusters from the company. The adjuster’s job is to sieve out fraudulent claims; so you will be required to narrate the incident elaborately.

The police department issues a Non Traceable Report after a specific period of time during which it tries to trace the vehicle. Following this, the formalities around transferring the RC of the lost car will be done.

The theft of a vehicle is categorised as a total loss claim under insurance. In such scenarios, the insurance company will pay a claim amount equivalent to the current market value of the car minus the deductibles.

How to protect your car from theft
There are several things that you can do to ensure that your prized possession is protected from thieves. Some of these measures may also bring down your car insurance premium.

● Install approved anti-theft devices in the vehicle
● Keep valuables out of sight
● Install a GPS tracking system
● Park your car in safe places

Apart from the above, getting a comprehensive car insurance policy will ensure that you are financially protected in the event of a car theft. The comprehensive policy also has a Personal Accident Cover that amplifies the protection offered by your health insurance policy. If needed, you can opt for suitable add-on covers to enhance the coverage under the comprehensive insurance plan.

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