Car or bike stolen — how the theft claim works, and why theft claims get rejected

Report the theft to the police and to the insurer at once, get the FIR, and keep every key and the registration papers safe. IRDAI's circular lists the FIR and the police's un-traced report among the documents a claim can need, and one insurer also asks, once it admits a theft claim, for Forms 28, 29 and 30 signed by you. The circular says a claim cannot be rejected merely because it was reported late or a document is missing, but your policy's notice condition still applies, so write down why any delay happened.

Much of a theft claim waits on police paperwork, so getting the first day right saves weeks later.

The first day

1. 1

   Report to the police and get the FIR.

   One insurer's summary sheet asks you to report a theft to the police and to the insurer immediately, and to get an FIR or a written acknowledgement from the police; its policy wording requires immediate notice to the police.^{[1, 2]}

2. 2

   Tell the insurer.

   Intimate the claim and note the claim number. The example wording makes written notice to the insurer a condition.^[2]

3. 3

   Keep the keys and papers safe.

   One insurer's theft list, for example, asks for all sets of keys along with the original registration papers. If a key is missing, write down why now, while the facts are fresh.^[3]

4. 4

   Tell the RTO.

   One insurer asks for an acknowledged copy of a letter to the RTO reporting the theft and making the vehicle 'non-use'.^[3]

The documents a theft claim needs

IRDAI's circular says a customer should submit only documents directly related to the claim, and its list for general insurance includes the FIR and the un-traced report. It gives no timeline for getting that police report, so ask the police station how and when it is issued in your case, and keep the insurer updated in writing. Your own insurer's list is in its policy document and on its website.^{[4, 5]}

Where theft claims run into trouble

• A late report to the police or the insurer.: The example wording asks for immediate notice. Against that, IRDAI's circular says no claim shall be rejected or closed for delayed intimation, and a general insurer cannot repudiate for a delay that did not increase the assessed loss. Write down why the report was late and what happened in between.^{[2, 4]}
• A missing key.: One insurer's list asks for all sets of keys. If one is missing, explain how, with any evidence you have, such as a service record or a bill for a replacement key.^[3]
• The policy not in force.: Check the risk start date and time in the schedule against the time of the theft; the example policy does not cover a loss before the risk start.^[1]

How the payout is measured

In the example wording, the Insured's Declared Value (IDV) in the schedule is the sum insured for the vehicle. If your schedule lists a return-to-invoice add-on, the example insurer's add-on covers theft claims on the vehicle's on-road price. IDV and total loss explains how IDV is set.^{[2, 1]}

If the claim is refused, write to the grievance officer; the insurer should resolve the complaint within 14 days. If the insurer rejects your complaint, replies unsatisfactorily or does not reply within one month of receiving it, you can go to the Insurance Ombudsman, within one year of receiving the insurer's decision or, if it never replied, of the end of one month after you sent your complaint.^{[4, 6]}

ClaimAssure is an independent private platform. It is not an insurer, IRDAI, Bima Bharosa or the Insurance Ombudsman, it never files anything on your behalf, and it cannot promise any outcome. What it does is read your documents and show you what they say.

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