6 Easy Steps to Claim Your Car Insurance
Car insurance is the policy taken by the car owner to mitigate the financial risk involved while operating the car. In case the car meets with an accident, damaged or is stolen, the loss borne by the owner is compensated by the insurance company depending upon the coverage of insurance policy. As per the provisions of The Motor Vehicles Act, 1988 all the vehicles, which are operating in public places should have a car insurance policy at least to cover third-party liability as specified under the Act. However, this third party insurance does not provide insurance coverage to you or your car.
If you are going to a restaurant or shopping and you park your car on a roadside, the worst thing that you can think of if finding it stolen on your return. The first thing that you should be doing is filing a police complaint. And the second thing you should be doing is informing your insurance company. To file a claim with your insurance company, you should have opted for comprehensive car insurance. As the name suggests, this policy provides overall protection against damages to the car. It is an extensive policy that covers damage to the car, legal liability to the third party, theft and personal accident.
Following are the steps for claiming insurance in case of stolen vehicle:
1. File a FIR: As soon as you find out that your vehicle is stolen, you should lodge a complaint in the nearest police station. This complaint is known as FIR, i.e. First Information Report. This is the first step in making an insurance claim and should not be missed under any circumstances.
2. Inform the Insurance Company: The second step is to inform the insurance company about the theft of the vehicle so that it can start its process of insurance claim settlement.
3. Inform the RTO department: A letter addressing the Road Transport officer (RTO) about the theft of the vehicle is also required. Based on this document, you will receive RTO transfer papers which will be required for submitting the insurance claim.
4. Submit the required documents: To file a claim with the insurance company, following documents needs to be submitted along with the duly completed claim form:
- Copy of FIR
- A copy of Registration certificate or RC
- A copy of your driving license
- Policy document
- Original keys of the vehicle
- RTO transfer letter
In case the vehicle is financed by any financial institution then, additional documents, i.e. Form 28, 29, 30 are also required. Kindly note that this is just an illustrative list and certain additional documents might be required. Hence, it is suggested to carefully read the policy document for any additional documents
5. Obtaining No-Trace report: A no-trace report has to be obtained from police department; this report states that no information about the car is found. Generally, police require 2-3 months to submit this report however, it may take longer. Kindly note that this report plays an important role in the claim approval process by the insurance company.
6. Insurance Claim approval: Based on the no trace report provided by the police, the insurance company approves the claim. In addition to above documents, the insured has to submit a letter of subrogation promising to compensate the insurance company for losses related to the car theft arising out of his actions or fault.
The value of the vehicle, i.e. Insured Declared Value (IDV) is estimated by the insurance company and accordingly payment is made. The insured must transfer the RC of a stolen vehicle in favor of insurance company. IDV is the maximum sum assured amount in case of total damage to the car. It is like the market value of the car at the time of damage to the car. In case a total loss of the car is claimed, IDV is the value which is paid. IDV is calculated on the listed value of the car less depreciation. The depreciation is calculated based on the age of the car. In case the vehicle is financed by any financial institution, the insurance amount first paid to the finance company towards the closure of loan and the remaining amount is paid.
The best way to protect your vehicle against any unfortunate event is by obtaining an insurance policy that is adequate and suits your need. It will help you combat the loss suffered by compensating it.