If our car / scooter is stolen, then immediately we should file an FIR at the nearest police station and also take possible steps to trace the said stolen car/scooter. After this, we have to inform the insurance company enclosing the copy of the FIR.
The insurance company will do all necessary investigation including the circumstances under which the said vehicle is lost. Then it will prepare one investigation report. If the cause of loss is within the coverage extended under the policy, the insurance company will pay the claim. But before releasing the claim, it will require a certificate from the concerned police station mentioning that the vehicle is yet to be traced. Also a declaration will be taken from us authorising the insurance company to do whatever they like to do with the vehicle when traced.
The basis of compensation will be the insured value . From this, the insurance company will deduct a nominal amount as depreciation for use from the date of insurance to the date of theft. After payment, the police station will be informed about the change of ownership due to payment against theft and police station is required to inform and hand over the vehicle when it is traced.
C.R. Venkata Ramani