Protect your belongings in case of car theft with the right cover

Posted on: Aug 11, 2021 | 3 mins | Written by: HDFC ERGO Team

Protect your belongings in case of car theft with the right cover

Owning a car is no doubt a matter of pride and a hefty investment, but it does make you worry about thefts. Forgetting to lock your car or parking it in an area known for carjackers especially makes your vehicle prone to theft. Or even if you are super careful, your car can get stolen overnight or the thief might simply get away with any costly item that you might have kept inside the car. Now, whether it is the whole car or just your expensive belongings that get stolen, the experience can be a harrowing one. However, there is usually a lot of underreporting in case only items from a car get stolen instead of the car itself. And that is because most people avoid involving legal authorities as they are grateful that their car is still intact. But it doesn’t have to be like that. If you choose a car insurance policy with the right add-ons (theft cover in this case), you can receive due compensation for stolen items.

What is the theft cover in comprehensive car insurance?

Before we explain the theft cover, know that third-party liability insurance will not cover you at all whether your car or the items inside get stolen. You definitely need a comprehensive policy that will cover you in case the car itself gets stolen. However, it will not cover the belongings inside, whether it’s an expensive camera, laptop or jewellery. For that, you need a theft add-on cover.

What is the Loss of Personal Belongings Add-on in Comprehensive Car Insurance?

As you may know, car insurance is of mainly two types: Third-party liability coverage and Comprehensive car insurance. The third party insurance protects you against any financial liabilities arising out of the injury caused to third parties or damage to their properties by your insured vehicle. Whereas, comprehensive car insurance is a bundle of third-party liability and own damage coverage. It covers third-party injury or damages to their property and damage or theft of the insured car. Any of these insurance types will not cover the loss of personal belongings that were in a stolen car. So, to protect your personal belongings with insurance, you should opt for personal possessions or loss of personal belongings add-on. This rider is only available for purchase with comprehensive car insurance.

If you have a personal possessions add-on, the insurer will compensate you for the lost belongings inside the stolen vehicle, as per the insured declared value of the car.

Why Do You Need Loss of Personal Belongings Cover?: Understand With an Example

Let’s consider Rahul’s example to understand this better. Rahul is an IT professional in Delhi who just bought a new Hyundai Elantra and took a comprehensive insurance policy only, without any theft loss of personal belongings add-on. Within a week of having spent Rs 21 lakhs on the vehicle, it got broken into or stolen. His high-end laptop, camera, sunglasses, and a watch, all were stolen from the vehicle.

While his comprehensive car insurance was able to cover the damage done to the car’s security system, his valuables, worth over Rs 2 lakhs, could not be recovered and were not compensated. Now, Rahul will have to spend upwards of Rs 2 lakhs on these items once again. To cover the loss of his personal belongings, what he needed was a loss of personal belongings add-on, which would have come at a nominal price.

What is Not Covered Under the Loss of Personal Belongings Cover?

The loss of personal belongings add-on excludes the following scenarios, where your claim will get rejected:

Negligent behaviour leading to the incident

• The car got stolen because of the policyholder's irresponsibility

• If the car was borrowed from someone else

• The items that the policyholder usually does not carry around

• Items that should be safely kept in a safe deposit box

• Not informing the police about the incident within 24 hours of the happening

• If the car got stolen or broken into when it was with a third-party

• Loss or damage to belongings due to car accidents

• If the belongings got stolen because the car’s windows or doors were not locked

• If the items do not belong to the policyholder

• If the items are not mentioned in the police report

• Damage caused by leaving belongings in the car overnight

Here’s How the Claim Process Works?

File a FIR immediately. Delay in doing the same can result in the rejection of your claim. Inform your insurer within 24 hours of the incident, whether it is a theft of the car or burglary. Thoroughly understand the process of claims. If the vehicle is stolen and is untraceable, inform the RTO. This is a step mandated by law. Collect the documents that you will need to file the claim.

Documentation required For the Claim Settlement Process

• Filled claim form with your signature

• FIR report’s copy

• Police investigation report

• Invoices of the stolen items

• Property irregularity report

So, keep the above in mind to successfully claim your insurance benefit, in case expensive items get stolen from your car. However, it’s better to try and prevent the mishap in the first place. Install anti-theft devices to deter potential break-ins, while also reducing your premium.

Benefits of Purchasing Loss of Personal Belongings Cover

Some of the benefits of purchasing loss of personal belongings rider include:

• Protection for your valuable personal assets

If you have a loss of personal belongings rider, it will compensate for the loss of your valuables kept inside the car, in case of vehicle theft or burglary.

• Rest assured and have peace of mind

Your life will be less stress-free knowing that even if an unfortunate event happens leading to the theft of your valuables from your insured car, the personal possessions add-on will compensate the financial loss.

• Reduces your financial burden

The loss of personal belongings rider will adequately compensate you for the lost items. This way you won’t be burdened with the purchase cost of new ones.

Conclusion

While comprehensive car insurance covers the theft of the vehicle, it will not cover the personal belongings that were inside the stolen car. But, don’t worry, just like the zero depreciation car insurance, tyre protection cover, engine protection cover, and many more, there is also a rider available to cover your personal belongings. Insurers offer an add-on called personal possessions coverage with comprehensive car insurance, which compensates for the lost belongings in a stolen car. So, if you want to protect the personal belongings you usually carry in your car, buy a loss of personal belongings rider and have peace of mind.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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