What is Cashless Car Insurance Policy?
Every general insurance company which offers car insurance has tie-ups with certain garages (car repair shops). At these partner garages, an insurance company settles a car insurance claim in a cashless manner, i.e, it settles the repair bill directly with the garage. Thus, the policyholder is not required to pay anything to the garage for the repairs of their car except their own liabilities.
While buying a car insurance policy, you must check how many cashless garages are a part of the insurer’s network. The wider the network of cashless garages, the better it is.
Benefits of Cashless Car Insurance Policy
When you get your car repaired at a cashless garage, you enjoy the following benefits:
1. Hassle-free Experience
Since it is a cashless garage, i.e. a garage which is a part of the insurer’s network, you can enjoy a hassle-free claim process as everything will be handled by the insurer itself.
2. Priority in Service
The partner garages of insurance companies give priority in service to the insurer’s policyholders. Thus, at these network garages, you can expect to get speedy service.
3. Quick Claim Settlement
At cashless garages, the claim settlement happens quickly as compared to reimbursement claims which may take 7-10 days for settlement.
4. Guaranteed Quality Service
Every insurance company ensures that good quality service is given to its policyholders.
What is your car's brand?
Add-ons For Your Car Insurance Policy
A car's value depreciates constantly with time. Thus, at the time of a claim settlement, the depreciated value of a car is deducted from the claim amount. However, by opting for a zero depreciation add-on you can shift the liability of the depreciation cost to the insurer and get the entire claim amount without any deduction of the depreciation sum. This add-on is generally available till the age of 5 years of car, however, the car age limit varies from insurer to insurer.
A No Claim Bonus (NCB) is a discount given by the insurer in the premium amount to a car insurance policy holder for not making a claim in the entire tenure of the four wheeler insurance policy. This discount is not available if the policy holder has made even a single claim. However, with the NCB cover, a policyholder will be entitled to receive an NCB discount despite having made a claim subject terms and conditions of insurance company. The NCB discount keeps on increasing with every claim-free year until it reaches 50%.
A car's engine is by default not covered under either a comprehensive or a standalone own-damage car insurance policy. And therefore, if it gets damaged due water-logging or oil leakage, your insurance company is not liable to pay for its damages. But, if you opt for the add-on known as Engine Cover, you can get your car's engine insured by the insurer for damages incurred due to water ingression as well as leakage of lubricants. Engine Cover is one of the most popular car insurance add-ons and is available against the payment of a nominal premium.
If you have a return to invoice cover added on to your comprehensive car insurance policy, you can claim the total ex-showroom price of your four wheeler, taxes and registration charges, in case of total loss. In case of total constructive loss (more than 70% of damage) or theft of your car, an insurance company pays the Insured Declared Value (IDV) of your car as compensation. However, this IDV is lesser than the actual amount paid by you at the time of purchasing your car. When you opt for the add-on called Return To Invoice Cover with your car insurance policy, the insurance company pays the total ex-showroom price of your car plus the taxes and registration charges incurred at the time of purchase, as the claim amount in case of total loss.
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