What if the Police Recovered a Stolen Bike after an Insurance Claim?

As the name suggests, bike theft insurance enables policyholders to receive compensation in case their bikes are stolen. When an individual sees that his/her bike is stolen, head towards the local police station, file an FIR and then inform the insurer.

However, if the stolen bike is recovered, policyholders will have to notify the insurance company as well. On recovery, they will not receive any claim amount from the insurance company. However, if the theft has led to any damage to the vehicle, policyholders will receive compensation for the repair expenses.

Know the Steps to File Bike Theft Insurance Claim

Here are the steps that will help policyholders go about filing bike theft insurance claim process:

Step 1: File an FIR

The first and foremost thing policyholders must do is file a First Information Report (FIR) at nearby police station. Policyholders must get a copy of FIR as they must submit it while filing a claim with their insurance provider. 

Step 2: Notify Insurance provider

After filing an FIR, policyholders must intimate their insurer regarding the mishap at the earliest and notify them with all necessary details pertaining to the theft, including the location, FIR copy, insurance paper of bike etc. On noting the submitted details, insurance company will then provide a surveyor who will scrutinise the situation before processing the claim. Policyholders must not withhold any details, cooperate with the inspector and maintain transparency in answering all the questions with honesty.

Step 3: Intimate RTO (Road Transport Office)

According to law, bike owners must inform the nearest Road Transport Office (RTO) about the bike theft. Per the RTO guidelines, individuals must keep necessary documents to register their bike theft. Informing the RTO will help bike owners obtain transfer certificates and other similar documents. 

Step 4: Submit necessary documents 

After completing the aforementioned formalities of informing the authorities and acquiring necessary documents, policyholders must submit the paperwork to their insurers to help them commence the claim process. Here is the list of documents that need to be submitted based on which insurer will take necessary steps to extend compensation.

• Registration certificate of bike
• Photocopy of driving license
• Insurance policy papers
• Copy of RTO transfer certificate
• Letter to RTO
• Duly filled claim settlement form
• Copy of FIR

Step 5: Submit ‘Untraceable Report’ from police

Suppose policyholders cannot trace their stolen two-wheeler for over a month. In that case, they will receive an ‘Untraceable report’ from police station, proving that the Police could not trace the lost vehicle. Policyholders will have to submit this report to their insurance provider so that insurer can settle the claim. It is imperative to note that in the absence of the report, an insurer can reject the claim filed by a policyholder. 

After submitting the untraceable report, insurers will scrutinise all the documents before processing a filed claim. On successfully processing a bike theft insurance claim, the insurer will reimburse the bike Insured Declared value to policyholders. With the reimbursed amount, policyholders can purchase same bike model they have lost. 

Individuals looking for the best bike insurance for their two-wheeler to compensate for bike theft must opt for a comprehensive bike insurance plan with bike theft protection as an add-on. A comprehensive bike insurance plan offers extensive coverage against accidents, damages or theft, thereby securing one's finances from getting dented.

Reasons to Avail a Bike Insurance Plan

Bike owners must opt for an effective bike insurance plan because of the following reasons:

• Meet legal mandate

According to the Motor Vehicles Act, 1988, bike owners must insure their two-wheeler. In this regard, a bike insurance plan helps one meet the regulatory requirement.

• Ensure financial coverage 

As the number of road accidents increases, bike owners must opt for an effective bike insurance plan and ensure robust coverage against such mishaps.

• Secure coverage against natural and man-made disasters

Natural calamities like earthquakes, cyclones etc., can damage one's motorcycle. Similarly, man-made disasters like acts of vandalism, burglary etc., also hamper one's bike. With a comprehensive bike insurance plan, individuals get coverage against both scenarios.

• Avail third-party liability cover

A third-party insurance cover protects one’s bike from third-party liabilities, helping one sail through legal disputes easily without straining their finances.

To sum up, bike theft insurance protects policyholder's bike against burglary or theft. In such unprecedented situations, the insurer provides coverage against replacement cost of the bike. If the stolen bike has been recovered, policyholders will have to notify their insurer about the recovery and follow the procedures to give back the pay-outs they received after filing a bike insurance claim. 

Reference links:

https://www.quora.com/Stolen-bike-recovered-by-police-after-successful-insurance-claim-What-to-do

https://www.libertyinsurance.in/two-wheeler-insurance-guide/claim-insurance-after-bike-theft.html

https://www.icicilombard.com/blogs/two-wheeler-insurance/bike/what--to-do-if-your-insured-bike-is-stolen