Avoid Your Car from Getting Stolen and Insurance Claim Getting Rejected

Car theft is becoming a big issue in India and especially because of the increasing number of stolen cars. In Delhi only, one vehicle is stolen in every 13 minutes and in 2016, the rate of stolen vehicle rose by 44% in comparison to the previous year. In the first quarter of 2016, 9714 vehicles were stolen in Delhi and the rate of recovered car is almost negligible. In the year 2015, 31,000 cases of stolen vehicle were registered in India and only 5.59% cars were recovered.

With the increasing number of car theft cases, the security of your car becomes very important, but there are also many cases where cars have been stolen due to the negligence by the owner or driver.

How to avoid car theft?

  • Install an anti-theft device- There are many anti-theft devices which can help you to protect your car or recover it from thefts. Some of the anti-theft devices which you can install in your car are steering lock, car alarms, gear locks, etc.
  • Park at safe and well lit places- Parking at a safe and well lit place is one of the best defenses against car theft. Many cases of car theft happen because irresponsible parking by the owner or driver.
  • Double check- Before leaving your car, you should double check on whether your car is properly locked or not, have you left any valuable item in the car or not, where are your car keys, etc.
  • Etch car number- Etch the car’s registered number on windshield and windows. This will help the police to identify your car easily.
  • Install a tracking device- This device will let you know the location of the car in case of theft. It also allows you to know what is the speed of the car, how long did it halt, etc. There are many tracking devices for car in the market which are very useful and cost-effective.

If your car gets stolen even after taking important preventive measures, then a car insurance can help you in recovering the amount of lost car. The total IDV (by subtracting the depreciation rate) is given to the insured person in the case of complete loss due to theft. But each and every claim is not entertained by the insurance company which could prove to a big hassle for you. So let us see the most common reasons for claim rejection which can help you to avoid such unfortunate incident.

Following are the Major Reasons for Claim Rejection

  • Not informing the insurer within a specific time limit: Your insurance claims can get rejected if you don’t inform the insurer within the specific time limit which range between 48-72 hours.
  • Driving under the influence of drugs and alcohol: If accidents happen while driving under the influence of drugs and alcohol, then your insurance claim will get rejected.
  • Driving without driving license: You should never allow anyone else to drive your car without proper driving license and it is also important to renew your car on a timely basis because if accidents happen when you or someone else was driving the car without a proper driving license then your insurance claim will get rejected.
  • Using your private car for commercial purpose: If you are using your private car for commercial purpose, then your car insurance claim will be rejected by the insurance company. That’s why you should buy a different policy for the cars which will be used for commercial purpose.
  • Theft due to negligence: If your car insurance company finds out that your car got stolen due to your negligence like leaving the car doors open, parking in a dangerous area, etc. then your car insurance claim will be rejected.
  • Damage from mechanical or electrical breakdown: If the damage to your car occurs because of mechanical or electrical breakdown, then your car insurance claim will be rejected by the insurance company.
  • Not informing the insurer about CNG/LPG installation: If you fail to inform your insurer about the installation of CNG/LPG (which requires extra premium) in your car, then your car insurance claim will be rejected.

Check out this Articles: 15 Tips For Car Insurance Claim Success

If your claim is accepted by the insurer then the full IDV is given to the policyholder in case of theft which has resulted in total loss. You get the full IDV in the case of more than 75% damage to your car due to an accident also. The IDV is calculated on the present value of the car and the age of the car.

After theft, you should file an FIR in the police station and inform the insurance company about the incident as soon as possible. You should also submit the required documents along with the non-traceable report to the insurer.

So protect your car from the increasing number of thefts by taking preventive measures and if your car gets stolen even after this, then claim for the total loss of your car under your car insurance policy but always keep the above mentioned points in mind, which leads to claim rejection, so that your claim doesn’t turn out to be a bad surprise for you.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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