Bikes are especially prone to theft since they are easy to hide, dismantle, and transport when compared to other motor vehicles. Without a comprehensive two-wheeler insurance policy, you will have to bear the entire cost of the loss and purchase a new vehicle for yourself. For this reason, if you own a two-wheeler, it is advisable to purchase a two-wheeler insurance policy that also offers an own damage cover. Listed below are the steps that you will have to follow to receive a settlement from your insurance provider in case your bike gets stolen.
If your two-wheeler has been stolen, you should register a First Information Report or FIR at the nearest police station. Once you have registered an FIR, you should ensure that you retain a copy of it since you will need to submit this to your insurance provider along with the claim form and other supporting documents.
Next, you will need to inform your two-wheeler insurance provider about your vehicle getting stolen. It is important to inform the insurer as soon as you discover that your two-wheeler has been stolen. You can contact the insurer by calling them on the toll-free number that will be mentioned on the official website of the company. The insurer might require you to provide certain details with regard to the incident such as the approximate time that the incident occurred at, where it happened, etc. You might also have to provide your policy number, details of your vehicle, registration number, etc.
Along with informing your insurance provider, you should also make sure to intimate the RTO under which your two-wheeler was registered about the same. To do so, you will need to send a letter addressed to the RTO mentioning the necessary details. After completing the necessary formalities, you will receive the transfer papers from the Regional Transport Office, which you will have to submit to your insurer.
Once the formalities above-mentioned have been completed, you will need to submit the duly-filled claim form along with the required supporting documents to the insurance provider. Most motor insurance providers will require you to submit the original FIR copy, a copy of the two-wheeler insurance policy ,document a copy of the two-wheeler’s registration certificate, a copy of your driving license, the letter that you sent to the RTO, and the RTO transfer papers.
In addition to submitting the claim form and the documents mentioned above, you will also have to hand over the keys of your vehicle to your insurance provider. Insurance companies ask policyholders to hand over the keys to ensure that the concerned individual was actually in possession of the keys during the incident. This eliminates the possibility of the policyholder having left the keys in the bike, which then resulted in the bike getting stolen.
Once you register an FIR, the police will try to locate your two-wheeler. If the two-wheeler cannot be traced, the authorities will issue a No Trace Report or a Non-Traceable Certificate to you. It usually takes around 30 days for the police to issue the Non-Traceable Certificate in case of a vehicle theft. The insurance company will only begin the claim settlement process once this certificate has been issued by the respective authorities.
Next, you will have to submit a Letter of Subrogation to your motor insurance provider. The Letter of Subrogation transfers your ownership rights to the insurer. Thus, if the two-wheeler is located, its ownership will shift to the insurance company.
Once the above-mentioned formalities have been completed, the insurer will process and approve your claim amount. The maximum amount that you can claim from your insurance provider in the event of a vehicle theft is the vehicle’s IDV or Insured Declared Value. If the two-wheeler was purchased on a loan, the insurance provider will pay the settlement directly to the lender. If there is any outstanding loan amount, you will have to settle the same with the lender to clear the loan.
Although the Motor Vehicles Act, 1988 has only made it mandatory for vehicle owners to purchase a third-party liability insurance policy, it is, in fact, advisable to opt for a comprehensive two-wheeler insurance policy since it provides coverage against a number of risks such as vehicle theft, constructive total loss, vehicular damage due to natural and man-made calamities, etc.
You can also choose to customise and enhance the coverage of your comprehensive two wheeler insurance policy by purchasing add-ons that are offered by your insurance provider. Further, you can also consider installing anti-theft devices that are approved by the Automotive Research Association of India (ARAI). In addition to discouraging thieves from stealing your two-wheeler, it will also help you receive a discount on your premium payable.
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