Car theft is an expensive headache – worrying as it is frequently reported. In Malaysia, data announced by the Malaysian Vehicle Theft Reduction Board (VTREC), an average of 20 vehicles were stolen in a day in 2020.
You may think that an insurance claim can be made to cover the losses (car theft) suffered. It depends on the policy type, some cover car theft. In this article, we would like to focus on a third-party policy.
Read on as we will further discuss what can a third-party policyholder do in such a situation.
Car theft, can you claim insurance?
Generally, all car owners are eligible to claim insurance for car theft. However, it depends on the type of policy that you possess.
Owners can claim insurance for car theft if they have a comprehensive policy or a third party, fire, and theft policy.
What if you only have third-party insurance?
We have explained the three policy types available in the market. These are i) comprehensive policy, ii) third-party, fire and theft policy, iii) third-party policy.
The third-party policy is the most basic one and the cheapest among all of them. It only offers protection for the third party in the event of an accident due to your negligence.
The policyholder will not be covered or compensated in case of car theft. This is because the policy coverage is not extended to them.
What should you do if you find your car is missing or stolen?
Report to the police
Do not put off the police report. Lodge a police report the second you notice your car is stolen. Reporting early will ease the police to investigate and start the search for your stolen car.
Check your car insurance coverage
Following a police report, do check your insurance coverage.
Ensure your policy is valid and covers car theft. Comprehensive policy and the third-party, fire, and theft policy enable you to claim insurance.
Please note that you will not be able to claim insurance if:
- Your insurance is no longer active
- You have third-party policy
Contact insurance company
Immediately contact your insurance company to inform the incident.
You have to fill up the claim form and provide several necessary documents. The insurance company will authorise an adjuster to conduct an ‘investigation’ to look into your case. This is to prevent any false claims.
*Note: In some cases, people report their cars as stolen due to the inability to pay off their bank loans. Meanwhile, they hide the car somewhere else.
Inform your insurance company
Contact your insurance company to get an update.
The investigation will take about 6 months to complete, before proceeding with the claim.
Wait for the outcome of the investigation
If the investigation fails to find any dubious elements in your car theft report, the insurance company will proceed with the claim.
They will compensate based on the agreed value or market value when you renew your previous insurance.
Get the best insurance coverage
In brief, the third-party coverage does not compensate for car theft cases.
Therefore, you need to get adequate insurance coverage for your vehicle. Spend a little more to protect your car from any untoward incident.
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