Is apple care covering iPads for theft and loss?

No.

Currently only iPhones have the option of Apple Care+ with Theft and Loss protection, and you need to buy it separately. Its not an automatic coverage with the standard warranty or even the regular Apple Care+ plan.

See here: AppleCare Products - iPad - Apple

No. Loss or theft is not covered by AppleCare+. When making a claim, your have to produce the corpse 🙂