Car Theft Insurance
Car Insurance

Car Theft Insurance

The number of auto thefts in 2020 was 873,080, according to a preliminary analysis of the National Insurance Crime Bureau (NICB). It was an increase of 9.2% compared to 799,644 thefts in 2019. No doubt, car-lifting is a big worry among owners. Considering the rising cases of car-lifting, it is imperative to have a vehicle theft insurance.

Which policy provides car theft compensation?

In India, car insurance is a mandatory requirement. There are two kinds of policies available in the market today.

-  Third-party insurance: This is a legal requirement, under which a third-party, in case of injuries caused by an insured vehicle, should be provided compensation by the insurance company. This policy, however, would not provide for any damages to insured car.

-  Comprehensive Policy: As the name suggests, this policy provides all-round coverage, ranging from third-party to natural calamities. The damages to the insured vehicle would also be provided for under this plan. This policy will meet the provisions of stolen vehicle insurance.

What benefits does a car theft insurance policy provide? With respect to certain terms and conditions, a comprehensive insurance policy offers the following:

  • Repairing the damages to your car in case of theft or break-in
  • Replacing stolen parts
  • A car in place of the stolen one

It is important to note that this coverage is not extended to theft of any personal belongings which may have been inside the insured vehicle when the car was stolen

Steps to claim for car theft insurance

Under a comprehensive policy, the policyholder is liable to receive compensation in case the insured vehicle is stolen, but the following steps would need to be followed.

Step 1: Contacting the authoritiesThe first step should be to lodge a formal complaint with the police through an FIR (First Information Report). As per the Motor Vehicle Act, it is necessary to inform the RTO (Regional Transport Office) about the car theft as well. After completing certain official forms, the information would be validated by the RTO officer.

Step 2: Informing the Insurance companyTo raise the claim, it will be required to notify your insurance company about the theft. Your insurance provider would require you to submit certain documents -

  • A copy of your insurance documents
  • Claim form carrying details of the theft
  • Original FIR copy
  • RTO transfer papers and relevant RTO forms
  • Driving licence copy
  • Registration certificate copy

Apart from these documents, you also need to submit your original car keys (two sets) for successful claim filing.

Step 3: Once you have filed an FIR, the police will begin an investigation and look for the stolen vehicle. After a stipulated time, if the vehicle has not been located, you will receive a no-trace report from the authorities. A no-trace report is typically generated after 30 days or more depending on the situation. This would need to be forwarded to the insurance company for their information and records.

Step 4: If all the above-mentioned steps are followed correctly, compensation will be provided by the insurance company. The key is to always procure the required documents from the authorities and make copies of it for your records as well, in case any disagreements were to arise in future.


The car insurance is mandated by the law in India, but it has now evolved to become a choice rather than compulsion. People want to feel secure and be compensated for any unfortunate event that may happen in future, which is why car theft insurance is readily opted for.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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