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Watch Out: How Your Worst Nightmare about Car Comes to Life & What To Do About It.

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Published on May 12, 2021. EST READ TIME: 4 minutes

With the second wave wreaking havoc across the country, many states have announced lockdown and curfew, with others planning to follow suit. During such times, with your movement restricted, you may not need your car as extensively, and it may remain parked in the garage for a prolonged period. Subsequently, you may believe that getting car insurance is a wasteful expenditure, and you may even downgrade your existing policy from comprehensive car insurance to a third-party one. But will it be the right call? Let us find out.

My car is in the garage. What can happen to it?

The COVID-19 pandemic has put the brakes on driving for a lot of us. And, if you are one of those who haven’t picked up your dust-laden car keys in a while then you should be aware of things that may be quietly happening to your car when not in motion. Some of the most commonly faced issues are batteries losing charge, tires going flat or losing pressure, ants and rodents making a home in your car, fluids and oils going stale, or simply, the car getting smeared with bird poop!

While a quick run to the nearby service centre can fix the above issues, what may leave you gasping for air (quite literally!) is when you find your car totalled. There could be many reasons how you could lose your car to the pandemic, and car theft can certainly not be ruled out.

Thus, motor insurance experts would always recommend switching your basic third-party car insurance policy to comprehensive car insurance policy, even when your car is not in use. There is no disagreement that comprehensive plan (bundled with add-on covers for extra protection) may come at a higher premium, but this shall ensure that your finances don’t take a hit in case of fires, explosion, vandalism or theft.

Which brings us to the next part of this feature.

What to do when you do not find your car parked in the garage – Next steps

First, don’t panic!

Second, with your comprehensive car insurance policy in place, inform your insurance company and they will reimburse you. Here's how. 

Understanding the claim process:

1. If you discover that your car has been stolen, you must notify two parties as soon as possible – the police and the insurance company.

2. You must file an FIR (First Information Report) at the nearest police station.

3. You can notify the insurer by phone or mail.

4. Next, to initiate the claim process, you must request a claim form, fill it out, and submit it.

5. You must include copies of important documents such as the Registration Certificate (RC), driver’s license, and insurance policy papers. You may also be required to provide the insurance company with a letter of subrogation.

6. Now, the police will submit a ‘non-traceable report', and the insurer may assign an investigator to look into the matter and ensure no foul play occurred.

7. Lastly, you will be reimbursed an amount approved by the surveyor. The IDV (Insured Declared Value) of the car is usually provided, as specified in the policy wording. However, if you have an add-on cover like Return to Invoice, you will receive the full amount back.

Now, none of the above can be a possibility if you do not pay heed to the many pieces of advice to bump up your coverage and continue to insure your car with the basic third-party liability policy to evade the fines.  

Conclusion

Now, you must have understood the importance of having car insurance with wide coverage, even if your car is the least used asset at the moment. Not only can a car be stolen, but it can also be damaged by other factors like fire or a flood, and only a comprehensive car insurance policy can protect your finances. Be smart and make the right choice!

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

This blog has been written by:

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry, S. Gopalakrishnan is a name to reckon with in the field of reinsurance; he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on the latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

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Few Other Articles:

• How to register car insurance claim

• Renew your car insurance in lockdown

• The 7 commandments to protect your car in the lockdown

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