Theft Cover in Two Wheeler Insurance

What is Theft Cover?

As the name suggests, theft cover is a type of insurance in case of theft or burglary. In such a scenario, the insurance company would cover the cost of the burglary or the cost of a replacement in case of theft. If a loan as taken out on the bike which is still to be repaid, the insurance company will pay the loan amount, with the difference having to be borne by you. Sounds too good to be true? But that's exactly what theft cover under a comprehensive two wheeler insurance policy will give you.

In the event your bike is stolen, there are certain steps that have to be followed before the insurance company reimburses you for the stolen bike.

Filing a Claim For a Stolen Two Wheeler

The process to file a claim in case your two-wheeler is stolen is listed below:

1. File an FIR (First Information Report) - At the nearest police station. This is to be done as soon as you realize the two wheeler has been stolen.
2. Inform the Insurance Company - the insurance company is to be informed as early as possible. Call the company on their dedicated helpline and provide details regarding the incident as well as the vehicle number and your policy details such as policy number, name of the policyholder, etc. Try to be as thorough as possible when describing the incident that led to the theft.
3. Inform the RTO (Road Transport Authority) -  for all theft cases, the RTO is to be informed, of where you will have to collect the transfer papers.
4. Document Submission - after notifying the relevant authorities and police, you are required to submit a list of documents to the insurance company on the basis of which the claim will be registered. The documents are listed below:
   1. Copy of the vehicle's registration certificate.
   2. Copy of the policy document.
   3. Copy of the policyholder's driving licence.
   4. Original FIR document.
   5. Claim settlement form, duly filled in and signed.
   6. RTO transfer papers.
   7. Vehicle's original keys.

1. Once the documents have been submitted, the insurance company will process them and verify them.
2. The police will issue a 'no trace report' attesting that the stolen vehicle could not be traced. It is only once the police hand over this document that the insurance company will process the claim.
3. Based on the documentation, the insurance company might choose to hire an investigator to look for the stolen vehicle.
4. Once the investigator confirms the vehicle cannot be located, the insurance company will take a decision on the claim filed and reimburse the IDV (insured Declared Value) amount or pay the loan (if applicable).

The IDV amount would depend on the premium amount paid. The lower the premium amount, the lower will be the IDV of the vehicle. However, it is advisable to pay a slightly higher premium and maintain an IDV that will cover the cost of your two-wheeler in the event it is stolen, especially if you reside or work in theft-prone areas.