Your Car Got Stolen? Do This Immediately to Avoid Claim Rejection

A stolen car is not just a financial setback. Daily routines take a hit. School drops need rearranging. Office commutes become longer. Even simple hospital visits need planning again. Along with this comes the stress of police visits, insurance paperwork, and not knowing how long it will all take.

In India, car theft is a common crime, particularly in large urban centers. Each year, around 36,000 vehicles are reported stolen, but only about 14,500 are ever recovered. With rapid growth in vehicle ownership and dense parking environments, cars remain vulnerable targets, making theft a real risk for owners across the country. 

Only comprehensive car insurance policies cover theft claims. Even if your car is insured, the claim will only work if you have the right policy and follow the required procedures. That said, the process is not automatic. You must act quickly and follow the rules precisely. Any delay, missing document, or incorrect detail could cost you time, money, or even a rejected claim.

Table of Contents

• Steps to File a Car Insurance Claim for a Stolen Car
• What Happens After Settlement?
• What if the Claim is Denied?

Steps to File a Car Insurance Claim for a Stolen Car

Here’s how you can go about filing a theft claim without getting overwhelmed:

Step 1: Confirm the Theft and Act Quickly

The first few moments after you realize your car is missing are often distressing. You might walk back to the parking spot, check twice, press the remote key, and still find nothing. That sinking feeling is normal, but what you do next matters.

Look around: Is your car towed for violations, moved by security, or did you park it in another lane? Ask nearby shopkeepers, guards, or neighbours if they have seen your car or noticed anything strange. If there is CCTV around, check if the footage is accessible. 

Inform the police right away: Visit the nearest police station and lodge a First Information Report (FIR). Without it, your insurance company will not entertain your claim.

When filing the FIR:

• Provide the correct location, the last time you saw the car, and any unusual details.
• Provide your car’s registration number, make, model, color, and any unique markings.
• Keep one FIR copy with you.

Feeling overwhelmed at this stage is completely natural! But acting quickly and documenting everything properly is the need of the hour. It will make a huge difference in getting your claim processed smoothly.

Step 2: Inform Your Insurance Company Without Fail

• After filing the FIR, contact your insurer.
• Call their customer service number or use the app or portal if available.
• Report the theft and ask for a claim intimation number. Insurance providers usually start their verification process after you inform them.

Step 3: Visit the RTO

Inform your RTO (Regional Transport Office) that your 4-wheeler has been stolen. This will help prevent your car from being transferred (re-registered) if it turns up later.

Carry the following documents during the visit:

• The Registration Certificate (RC) of the stolen car
• A copy of the FIR
• Your insurance details

They will give you some forms to fill out to document the theft. Once done, you will get the transfer or theft endorsement documents (that you will need for the insurance claim).

Also Read: Motor Insurance Claim Guide

Step 4: Keep Required Documents Ready

Once the initial shock settles, paperwork becomes the biggest part of a claim. The insurance company will not move ahead until you submit all the required documents.

In most cases, you will be asked for:

• The original FIR copy
• A copy of your insurance policy
• The RC book
• Your driving license
• RTO transfer or theft-related forms, usually Forms 28, 29, and 30
• The claim form shared by your insurer
• The car’s original keys, if they are available

It is a good idea to keep photocopies of all these documents in one folder. Remember! Insurance claims often slow down over small things, and even a missing page can mean extra calls and visits. Staying organized here can save you a lot of time later.

Step 5: Police Investigation and the Non-Traceable Report

Once the police have your FIR, they will investigate. In many cases, they try to locate the vehicle. Most insurers will not settle a theft claim immediately. Here is the reason:

Police will need time to investigate and possibly recover the car. Insurers often wait for an official 'Non-Traceable Report or No-Trace Certificate’. This confirms - no trace of your car was found even after the investigation.

This phase may take several weeks. In some cases, police may provide the non-trace report in about 30 days or more.

Also Read: Reasons why a motor insurance claim can be rejected?

Step 6: Submit Your Claim

After you receive the non-traceable police report:

• Complete the insurer’s claim form if you haven’t already.
• Submit all required documents.
• Provide originals or attested copies, as requested.
• If your vehicle was under loan, include the lender’s NOC or Form 35.

Most insurers have online portals now. You can upload scanned copies of all documents there. Or else, you can also submit them to your insurer’s branch.

Step 7: Assessment and Settlement by Insurer

Once your claim is submitted, the insurer will start its internal review. They will check:

• The authenticity of the FIR and police reports.
• Whether your car was covered for theft (only comprehensive policies include theft coverage).
• Whether all forms and RTO formalities are complete.

It is a standard procedure insurance companies follow to avoid mistakes and prevent fraud.

What Happens After Settlement?

Once the insurance company approves your claim, they will:

• Calculate the payout based on your policy’s terms and the Insured Declared Value (IDV) of the car.
• Issue a settlement amount and close your car insurance policy.

What if the Claim is Denied?

Know your rights as a policyholder. In India, policyholders are protected by consumer and insurance regulations. If you believe your claim was unfairly denied, you have the following remedies:

• Approach the Insurance Ombudsman.
• File a complaint with the Insurance Regulatory and Development Authority of India (IRDAI).
• Go to the Consumer Court.
• There have been cases where insurers were fined or ordered to pay claims after unfair denial.

To Sum Up

Losing a car to theft is upsetting, and the uncertainty that follows can make it even harder. Knowing what to do next gives you some control in an otherwise stressful situation. Act quickly, keep your documents organized, stay in touch with the police and your insurer, and follow each step patiently.

If you handle the process carefully and provide accurate information, your claim is more likely to be settled smoothly. While it may take time, a fair settlement can ease the financial strain and help you move forward after a difficult experience