Owning a car is a big milestone for most of us. It is more than just another possession, a lot of us have an emotional attachment to our cars. The first car always has a special place. It is that moment of joy and pride, at finally achieving one of our childhood goals; a time when we actually step into adulthood and responsibility. As many emotions are connected to that car, if something happens to it, it is a moment of personal pain. If the car was to get stolen, the shock and misery is compounded by the financial loss that you have to bear.
Losing our vehicle to theft is a terrible thought – most of us don’t even want to contemplate it. But in the highly unfortunate circumstance that it does happen, car owners should ensure that their car is protected by a comprehensive motor insurance policy that includes third party cover, cover for accident, fire or theft, and risks arising due to natural disasters.
Comprehensive motor insurance is probably the best friend your car can have; it can help you get back your beloved vehicle in in shape without burning a hole in your pocket.
How does a comprehensive cover help?
Some people end up buying only the mandatory third-party liability insurance cover for their car and in doing this they leave themselves vulnerable to financial damage if their car meets with an accident.
Let’s say your car meets with an accident. A third-party liability insurance will only cover damages the other party claims from you, but who will pay for the repair of your car? This is where a comprehensive motor Insurance comes in. The end-to-end coverage provided by the policy, is a contingency plan you can fall back on in all circumstances - vehicle damage caused due to accidents, fire, natural calamities or even theft.
Once you invest in a comprehensive cover for your dream car, make sure you have the following in place to file a claim, in the unfortunate instance of a theft:
Timely information to all concerned authorities in case of theft.
Inform the police: As soon as you learn of the theft, the first and crucial step is to lodge a FIR (First Information Report) with the nearest police station. This is a pre- requisite to proceed further.
Inform your insurance provider: Once you register the FIR, intimate your insurance provider immediately. Any delay beyond the stipulated time allowed by the insurer, could have an impact on the acceptance of the claim. Be transparent in providing the Insurer with all the facts related to the theft.
Inform the RTO (Regional Transport Office): Inform the concerned RTO regarding the vehicle theft. This step is critical as registration authorities are responsible for transferring ownership of the vehicle. Timely notification to the RTO can be helpful in preventing unauthorised change in ownership.
Keep the necessary documents ready: Duly signed claim form – this can be digital as well Registration Certificate (RC Book) of your car, Insurance Policy Details, Driving License
Police FIR (for theft claims)
Intimation Letter addressed to the RTO (if the car has been stolen)
Making the claim:
Call the Insurer’s customer service and inform them of your claim. Several Insurers accept the recorded conversation as a registered claim. Please ensure you cover
important information such as car details, policy number, time, date and description of the incident.
Untrace Report – this is issued by the police to confirm that your vehicle is untraceable. This report is critical and needs to be submitted, in case of theft claims. There are very high chances of a claim request being rejected, in the absence of this report.
In case the stolen vehicle has been purchased on loan, the insurance company will make a pay-out to the financer; you will need to pay the balance amount, if any. It is advisable to install anti-theft device in your vehicle to prevent theft. This may allow you to get a discount in premium as well as be a viable option in the long run
To conclude, vehicle theft is a disturbing experience, however, having an insurance eases the associated financial pain. Remember to follow the guidelines mentioned to make sure your claim process smooth and hassle-free.
(The writer is Executive Director & CEO, Edelweiss General Insurance)