CAR INSURANCE CLAIMS – THEFT

Car insurances may be claimed under the following circumstances:

  • Theft
  • Accident
  • Damages caused due to natural disasters

 

In this article, we will deal with Claiming a Car insurance policy in case of THEFT.

 

PROCESS: If your car is stolen, following chart illustrates the process involved:

Call Police

  • Lodge a complaint
  • Call insurance agent/company
  • Detailed investigation follows
  • Claim approved/disapproved
  • Call Police
  • Lodge a complaint
  • Call insurance agent/company
  • Detailed investigation follows
  • Claim approved/disapproved

 

POLICY TYPE: There are 2 covers that allow for claims pertaining to Theft of Car – Third Party Theft and Fire, and Comprehensive cover. Once you have made a police complaint and informed your insurance agent/company, the nature of theft will be analyzed before a payout is made.

 

BEWARE: However, if the theft occurs due to owner’s negligence, then the insurance company owes nothing to the policyholder. An example of negligence: If you allow another person to park your car, but he/she ends up driving away with your car, then it’s considered an act of negligence.

 

TIMELINE: Theft claims usually take longer to process as the police and the insurance company have to assess/investigate the theft.

 

REPOSSESION OF CAR: If the vehicle is found before receiving the claim, then the same is returned to the policy holder. One can then file for own-damage claim (under comprehensive cover). But if the vehicle is found after the claim has been paid out, the car belongs to the insurance company.

 

What policyholders neglect is the impact of Claims on their future premiums. Non-claim discount (NCD) is an important point in this regard:

In simple terms, NCD is the discount in premium allowed by the insurance company, if the owner of the car has made no claims during the said period. It is advisable, if the repair cost of the car due the theft is affordable, you can consider repairing it at your own cost, without applying for claim as it will affect your NCD and thus shoot up your future premiums.

 

Malaysia has several insurance companies offering a variety of car insurance plans. Visit www.smartgenie.com to compare and get the best price for different policies.

 

Disclaimer: All information provided in this article/blog, published on this website is strictly for general information purpose only. SmartGenie does not provide any warranty about the authenticity and accuracy of such information. SmartGenie will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Please visit the websites of respective banks/financial institutions for more details about products.



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