Do You Know about Theft of Personal Belongings Add-on?

Posted on: May 19, 2022 | | Written by:

Do You Know about Theft of Personal Belongings Add-on?

Imagine, you have gone to the market and you leave your wallet or phone in the bike. Once you get back you realise your bike has been stolen. If you have a comprehensive bike insurance cover, you will get the insurance claim based on your insured value. But, the insurance company will not pay for any personal belongings which have been left in the bike. So do you suffer the loss and there is no way to recover the losses? No, if you have an add-on for your bike insurance policy which is called, Theft of Personal Belongings.

What is Theft of Personal Belongings Add-on Cover?

The add-on cover called, theft of personal belongings is a coverage that enhances the coverage of your standard comprehensive bike insurance policy. This cover protects the personal belongings which get stolen with the bike in case of theft. The insurance company in this case will pay for the amount mentioned in the insurance policy for this add-on cover after deducting the depreciation at the rate applicable. The add-on cover can be bought when you are buying a new insurance policy for your bike or when you are renewing the policy.

The insurance company settles the claim under this add-on in the same way as the bike. Here the amount is settled after deducting depreciation and reimbursed to the insured.

Why is a Theft of Personal Belongings Add-on Cover Needed?

A comprehensive insurance policy is a must for your bike. The policy will provide financial protection against any loss or damage that can happen due to a man-made or natural calamity. In the case of third-party liability, the policy covers legal or financial liability. The bike is covered under this policy, but if there are any personal belongings that get lost with the bike at the time of a theft, there is no liability on the part of the insurance company to pay for these. Thus, to protect against losses of personal belongings, you need an add-on cover in your insurance policy for Theft of Personal Belongings. This coverage is not available in a standard bike insurance policy and thus, the insurance company gives the option to opt for these at an additional premium and get coverage for your personal belongings in case the bike is stolen.

Advantages of Buying Personal Belongings Theft Cover

The cover enhances the coverage of a standard comprehensive bike insurance policy. After understanding why you need the cover, let us quickly see the benefits of this cover:

● There is no need to spend your savings to buy the personal belongings that are stolen as the insurance company will pay the amount

● You get compensation from the insured company as per the insured value for the belongings that are stolen

● There is no mental stress as you know in case of a theft, the coverage is there for any personal belongings which are stolen

Exclusions of the Theft of Personal Belongings Add-On Cover

Like each insurance policy has a set of exclusions, the same holds true in the case of this add-on cover. Some of the main exclusions are:

● Any personal belonging not left in the insured bike at the time of the theft

● Damage or loss of any belonging which is for a commercial purpose

● Any claim registered 30 days after the incident

It is important to carefully read the policy document and also understand the exclusions before buying the policy. This is important to know what will be paid by the insurance company and not waste time and raise false hopes expecting coverage for things not covered in the policy.

How to Buy the Add-on Cover?

The add-on cover for theft of personal belongings can be bought at the time of buying a new standalone own damage cover or a comprehensive bike insurance policy for the bike or at the time of renewal. At both times, there is a list of add-on covers that can be opted for, and here one can choose the add-on cover for theft of personal belongings cover. The premium is calculated automatically if you are doing it online. Once the premium is paid, the cover is active. The same can be done in a similar way when buying the policy offline.

Documents Required for Filing the Claim

Each insurance company has a process that should be adhered to at the time of filing a claim. Doing so properly and substantiating the claim is very important. No claim is settled unless all proper documentation is provided to the surveyor as he processes the claim and submits his report to the insurer based on these documents.

Some of the primary documents that are needed to file the claim for theft of personal belongings are:

● Copy of the FIR from the police station. As soon as the robbery is there, an FIR has to be filed at the neared police station

● Original invoice or bill of the belongings which are being claimed for

● A written document as proof of the ownership of the items stolen

Once the above are submitted, one should be prepared for the fact, that the claim will be settled after factoring in the depreciation of the belonging which has been stolen. The rate of depreciation often ranges from 20% for a 1-year-old commodity to nearly 80% for something that has an age of more than 4 years.

Things to Remember

The following must be kept in mind while filing a claim for theft of personal belongings:

● Written acknowledgement and FIR are very essential and must be submitted

● The insurance company must be informed within 30 days of the theft

● Depreciation will be deducted

● The cover can only be bought with a stand-alone own damage or comprehensive policy and not a third party bike insurance policy

The theft of personal belongings at the time of the theft of your bike is a loss that the insurance company cannot pay for under a standard policy. Items like mobile phones and laptops are expensive and buying these as replacements can be a dent in the pocket and the savings. In case of a theft of personal belongings add-on cover, all these are paid for by the insurer as reimbursement. The only deduction made is that of depreciation. Understanding the cover, the exclusions and the conditions under which the claim is payable and paid by the company is essential. So next time, you are buying bike insurance make sure you have the add-on cover and get the coverage against any theft of your personal belongings which can get stolen with the bike.

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

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