Cashless Facility in Two-Wheeler Insurance

In our country, a large number of people use two-wheelers to commute on a daily basis. The two-wheeler vehicles are the first choice of maximum population due to their affordability, convenience, and lesser maintenance. When it comes to insurance, like any other vehicle, to hold a third-party insurance coverage for your bike or scooter is also compulsory as per the Indian Motor Tariff. Therefore, you should ensure to acquire a valid bike insurance policy while driving your bike.

There are several two wheeler insurance companies in the market among which some offer cashless facility benefit in addition to basic policy coverage. This service helps you repair your two-wheeler vehicle at any of the network garages that holds a tie-up with your bike insurance company, without any type of upfront payment. The cashless facility is a very popular service nowadays which insurance providers offer for a bike in order to provide additional assistance.

What Is a Cashless Claim?

When you request a cashless bike insurance claim, the repair bill is directly sent to the insurance provider from the network garage after the completion of the work. After checking the bike insurance details, the insurance provider pays off the amount to the bill sent by the garage. However, the insured person may only require to pay a small amount of compulsory deductible. The compulsory deductible is the amount that you pay from your personal sources before the insurance provider settles your claim request. Generally, this amount is of Rs. 100 per claim for two-wheeler insurance.

How Does Cashless Claim Process Work?

If you meet with an accident or any mishap with your two-wheeler, in such a case, you have to take your damaged bike or scooter to one of the garages or workshops within the network of your insurance company. The list of garages or workshops is easily available on the website of the insurance company. The name of the network garages can also be listed in your policy document. Otherwise, you can also connect with the customer service number to get the details of the service center.

When you take your scooter or bike to a recognised network garage, an inspection by the representative of the insurance company tends to be undertaken. The executive or surveyor will approve cashless insurance for your bike after through inspection. After getting the approval, the network garage starts the repair work. On the completion of the work, the repair bill is sent to the insurance provider along with some relevant documents. The insurance company analyses and verifies the bill before paying off the claim amount requested by the network garage.

Whenever you request for cashless bike insurance, you should remember that the insurance provider will settle only those repair works which are covered under your bike insurance policy. In case, the repair work involves bike accessories or fitted gadgets, then you will have to bear the repair expenses for the same.

Importance of Cashless Garages Facility in Two-Wheeler Insurance

The cashless garages facility holds a huge significance in two-wheeler insurance as it offers several benefits to policyholders, which are as follow:

1. Relief From Stress

When it comes to the benefits of a cashless claim facility, relief from stress tops the charts. The reason behind this is that all your repair related expenses are borne by the bike insurance company and you are only required to pay for the amount of compulsory deductible.

2. Quick and Hassle-Free Service

Most of the bike insurance providers own a wide range of repair garages and service centers or workshops within their cashless facility network. Some insurance companies even hold more than 5,000 authorized garages in their network to provide a cashless facility to its policyholders.

With the large number of garages in the network, you can easily find a service center nearby your location after facing an accident, mishap or breakdown of your vehicle. In short, it makes the entire process from repair to claim settlement fast and easy.

3. No Need of Money

In normal situations, you are required to hold a good amount of cash to get your bike or scooter repaired after an accident or breakdown. However, with the cashless facility, you just have to search for the nearest authorised service center for repairing your bike.

The service center completes all other formalities and repairs your bike without asking for any money from you other than compulsory deductible. Therefore, the cashless facility is crucial for every bike rider as it assures the repair of your bike anytime and anywhere without any delay and without any money at the authorized garage.

Conclusion

The accident or breakdown of your two-wheeler is quite uncertain and can happen anywhere. Hence, it is recommended to choose an insurance company with a large network of garages across the nation so that you can face bike repairs more confidently. It will make your drive more secured and allow you to find the assistance without having much cash in hand.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Add-on Covers For Your Bike Insurance Policy

  • Zero Depreciation

    Like other assets, the value of your two wheeler also depreciates constantly with time and the liability of this expense by default rests with the policyholder. A zero depreciation add-on protects you against the depreciation expenses incurred by your bike. Thus, if you opt for a zero depreciation cover, depreciation expense of your bike is not deducted from your claim amount at the time of a claim settlement. This add-on is available with comprehensive bike insurance plans as well as standalone bike insurance plans. This is one of the most popular and recommended bike insurance add-on covers.

  • Invoice Protection

    In case of total loss (more than 70% damage) or theft of your bike, the insurance company pays you the Insured Declared Value of your bike as compensation. However, this Insured Declared Value (IDV) is less than the invoice price which you pay at the time of purchasing your bike. The Invoice Protection add-on cover helps you claim the Invoice Price, i.e. total ex-showroom price of your bike plus taxes plus registration charges, of your bike in case of total loss or theft of your bike.

  • NCB Cover

    No Claim Bonus is the reward which is given to the policyholder for not making any claim during the policy period. This reward is offered by the insurer in the form of a discount on the own-damage premium of the bike insurance policy at the time of policy renewal. The NCB ranges from 20% to 50% of the own-damage premium depending on the number of claim-free years. However, if you make even a single claim during the policy period this NCB gets lost. But, with the NCB Cover, you can keep your NCB intact even after making a claim during the policy period.

  • Engine Protection Cover

    The damages incurred by the engine of the two wheeler are by default not covered under a bike insurance policy. However, if you opt for an Engine Protection Cover, the insurer will be liable to compensate you for damages incurred by the engine of your bike such as damage due to leakage of lubricants, water ingress, hydrostatic lock, damaged gearbox, broken crankshafts or pistons and cylinders. The repair cost of the internal engine parts is often high and can sum up to thousands of rupees or more. Thus, addition of this add-on to your comprehensive or standalone 2 wheeler insurance policy can save you from these expenses.

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