Loss of Personal Belongings Cover in Car Insurance

Car insurance is often a simple and straightforward process. Based on the coverage requirements, one buys a car insurance policy. With countless times being reiterated, it is common knowledge that motor insurance is mandatory. The Motor Vehicles Act of 1988 lays down the regulatory requirement to have motor insurance cover. Third-party and comprehensive policies are the two types of insurance policies that one can buy. Among the two, third-party or liability-only plans are mandatory in nature wherein a limited coverage is offered towards damages and injuries. This is where a comprehensive plan ranks over a third-party policy. Since the limitations of a third-party plan are covered by a comprehensive policy, it is often the recommended choice among the two. Moreover, these comprehensive plans can be customized as per one’s need; customization in the form of add-ons. Among the many add-ons that can be bought, a lesser known add-on known as loss of personal belongings cover offers some unique benefits. Let’s have a look:

What is loss of personal belongings in car insurance?

Since many things can be carried along at once, cars parked in garages or parking lots often contain some or the other personal belongings. Owners often tend to leave them behind for convenience. It can be a laptop or mobile phone or other important documents. Doing so, not only it catches attention of passer-by’s, but also invites the chance of theft. Generally, a comprehensive car insurance policy protects the car against theft but does not insure from the loss of personal belongings from it. With a loss of personal belongings in car insurance, theft of one’s products is covered by the insurance company. When a loss of personal belongings cover is bought, the insured no longer be worried for the theft of such expensive things. Since this cover is available in form of an add-on to your car insurance policy, be mindful that it comes at an extra price bumping up the premium. Different insurance companies offer this coverage in different forms; some have dedicated coverage for electronic equipment, while some insurers offer based on the damage or as a theft-specific add-on. Further, this add-on is also available as a mix and match of the above types by a few insurers. Any concerns about this add-on must be resolved with respective insurers to have a full information about the add-on opted for. Just like any other add-on, loss of personal belongings cover has its share of exclusions which can be found in the policy document.

The exclusions to loss of personal belongings in car insurance

Since this add-on is offered in different flavours by insurance companies, the list of exclusions is not specific, but mostly generic in nature. However, there are a few general exceptions as mentioned below -

• Any loss caused by the negligence of the policyholder.
• Intimation to the insurance company later than the specified duration as per terms.
• Not ensuring adequate safety on the part of the insured.
• Loss of data stored in electronic equipment.
• Not taking the right steps with respect to documentation and FIR (First Information Report).
• Loss of belongings related to trade or business.

What is the procedure to raise a claim for loss of personal belongings in car insurance?

The insurance claim process begins with informing the insurance company about the loss of personal belongings. Then, an FIR needs to be registered for the theft which is required to be furnished along with relevant documents to the insurance company. One thing to remember is the insurer when making a pay-out of the claim accounts for depreciation on such stolen goods. This is how a loss of personal belongings in car insurance helps. While thefts and accidents are unforeseen, and it is best to be prepared for such times. So why wait any longer? Get your car insurance with loss of personal belongings cover today!  Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.