December 26, 2008
Stolen cars and how to claim for them
If the motor is found subsequent to your claim being paid then the vehicle must be handed over to the Car Insurance Company and the stolen car will now be the property of the insurance company. If you do not do this then it is considered as fraud and a criminal offense. Most of the insurers usually give the insured the option to buy the stolen car back when it is recovered. If you are thinking in going for this alternative then you should be conscious of circumstances that could significantly impact on the value of the recovered vehicle. Before the insurance company paid our claim then the vehicle would have been scrapped. The motor will need to be registered as a Code 3 car and identified as a Built Up car on the registration certificate if it has to be re-selled. If the VIN number has been meddled with then the police will assign a new VIN number beginning with AAPV. If you purchase back your vehicle, you must insurance that you get a considerable discount on the market value as no dealer will pay the full market price for a motor. To avoid over-insurance this asset, make sure that you insurance the re-purchased vehicle at the price that you paid to purchase it from the insurers.
When purchasing car insurance it is essential that you are informed, understand and stick with to the security requirements, such as immobilizers or tracking devices, stipulated in the policy. Keep all certification to confirm non-standard security items that have been added to your motor, such as a gear lock, alarm or tracking device. Failure to meet the policy conditions may result in the repudiation of a claim in the incident of your car being stolen.It is just as important to follow the correct procedure in the event of your motor being stolen. It is obligatory by all the insurers, that when you find out that your car has been stolen, that you right away report it the the police. To prevent further loss and assist in the recovery of your vehicle, the onus is on you as the owner of the car.A theft case must be opened and file number obtained from the police. Failure to do so could endanger your right to claim from the insurance company and could be construed as committing fraud. Any delay in notifying the police will increase the possibility that the burglars will get away by allowing them more time to escape with the car.If your car was stolen from a parking lot where there is security then you have to report it to the security office so they can certify that security was in place.Request for written confirmation or this notification and then notify your insurer at once. Supply them with the relevant documents for non-standard security items and if the vehicle was driven by any other individual than the insured at the time of the theft provide them with a certified copy of the driver’s license and identity documentation of the driver.Notify the relevant financial institution if your car is subject to a hire purchase or lease. Define the outstanding loan amount and bear in mind that you still have an obligation to keep up the monthly repayments both on your car debt and your insurance policy until your claim has been settled in full.If the vehicle is not recovered within a reasonable time and the insurance company compensates you for your loss you are no longer the owner of the stolen vehicle. If the motor was subject to a Hire Purchase or Installment Sale, the Insurers would have noted their interests on the policy and would have reconciled any unpaid debt before paying out the balance to you.
