How does a theft claim work?
As mentioned earlier, your bike insurance policy shall also provide financial coverage if your bike gets stolen. Should this occur, you can file a claim with your insurer. In case of theft, the following steps need to be followed to ensure a seamless claim process.
As soon as you discover that your bike has been stolen, you need to contact the police. File an FIR at the nearest police station and provide all the details about your bike.
Once the FIR has been filed, notify your insurance company about the theft and disclose all details, including the time and location of the theft.
In order to initiate the claims process, your insurance company will require certain documents from you -
- Copy of the original FIR
- Copy of your policy copy
- Duly Filled Claim form
- Original keys of the vehicle. (2 keys, if one of the keys is lost or stolen, will have to submit an FIR for the lost key as well)
- Copy of the RC
- Original Tax Invoice and Tax Certificate of the vehicle
- Copy of PAN Card of the vehicle owner.
- Cancelled Cheque (Should be in the name of the policyholder).
You will be required to submit the following documents during the course of investigation. You may hand them over either to the insurance company or to the investigation officer.
Form 28,29,30 and 35 (Received & Signed from RTO)
Letter of Subrogation (Executed on Non Judicial Stamp Paper of Rs 100 and Notarised)
Letter of Indemnity (Executed on Non Judicial Stamp Paper of Rs 100 and Notarised)
Extract of RC with the remark "Stolen". (You may apply to the RTO for the extract after reporting the theft of your vehicle to get the endorsement printed on the R.C extract.)
A copy of Letter to NCRB reporting the theft of the vehicle. (This is the letter that you will have to send to the NCRB (National Crime Records Bureau) informing them about the theft of your vehicle.
- To verify the claim, they will appoint an investigation. officer.
- You should also inform the RTO of the theft. This is because once it is evident that the bike has been stolen, the ownership of the vehicle, i.e., the name of the vehicle, must be transferred to the insurance company. The RTO will handle this entire transfer of ownership of the vehicle.
- Since an FIR is filed, the police will investigate the case with the details provided. If the bike cannot be traced within a span of 30 to 90 days, a report will be issued by the police stating that it is untraceable. Once you submit this report to the insurance company, they will proceed with your claim.
- The insurer will verify your documents and determine whether the claim is valid, and then compensate you by paying the Insured Declared Value mentioned in the policy.
- If there is any hypothecation on the bike, meaning that the bike is on loan with the lender, the insurance company shall deposit the compensation amount to the lender's account upto the balance outstanding, and pay you the remaining.
- If you have fully repaid the loan, you need to produce the supporting documents as proof to the insurance company so that the money can be transferred to you at the time of claim.
Note: It takes at least 1-3 months for the theft claims process to get completed. This is because certain documents, such as RC extracts and Untraceable reports, take time to reach the customer, and the verification process consumes quite a bit of time too.