Hope i'm reading this post right here

If you are paying monthly for your policy, you have entered into a HP agreement for the payments only.
As soon as your policy is active, be it one hour or 11 1/2 months into the policy, you are fully covered as long as you have been honest with the company and all details are correct in the schedule.
The company will try it on with you over what the car is worth.
Its upto you (if you disagree with there valuation) to say so and refuse the offer.
Ok, you left the doors unlocked but at the end of the day, the car was not stolen or broken into.
The fire was caused by a probable electrical fault on the power sounder which caused a fire under the bonnet. This is covered by all motor policys from TPFT upwards

If the insurance company have removed or scrapped YOUR car without your permision, that is theft

If the insurance company have removed or scrapped your car without a price been agreed with you first, that is THEFT.
No claims ................. if you had full no claims, you will loose 2 or 3 years worth.
If you had protected those claims, you keep them as long as you don't have too many claims in one year. (2 or 3 iirc)