When you buy a car on loan, your car is hypothecated in the name of the lender. This hypothecation can be confirmed in your car's RC book. Scenario 1: If you have paid off the loan Imagine you have settled the last monthly installment of your car loan, your bank will send you the necessary closing documents within two weeks. These closing documents comprise a no-objection certificate (NOC) which clearly states that there is no balance amount due with respect to the loan. And now, with such valid documents, you are eligible to file a stolen car insurance claim.Scenario 2: If you have not paid off the loanImagine your car is stolen before clearing the loan, you will need to file a claim with your insurance provider. However, the owner of the vehicle on your car’s RC book will still be the lender. You will need to repay the complete loan before claiming any compensation from your insurance provider.