Cashless Car Insurance Policy Usefulness

People buy car insurance to secure themselves against any financial liability which may incur due to an accident or a mishap. In such cases, the insurer is liable to give compensation for your expenses. However, with technological advancement, several insurance providers have been coming up with an option to claim cashless car insurance. This ensures a smooth and fast claim settlement process.

However, let’s get into the details of this feature of cashless insurance.

What is Cashless Car Insurance?

When your car meets with an accident or an unfortunate event like an accident, theft, etc., you request an insurance claim with the insurance provider. The claim amount can be settled in two ways - in a cashless manner or via the reimbursement process. In the case of a cashless claim, the garage, where your car is repaired, is paid directly by your insurer. A cashless car insurance claim provides you with an instant aid after an accident or any unfortunate incident and spares you from paying for any repair cost.

However, the cashless claim can be availed only if your car is sent to a garage part of the garage network of your insurance provider. You should remember that these claims may not be 100% cashless and you may have to pay for the default depreciation and deductibles.

Steps To Get A Cashless Car Insurance Claim

Here are the steps you need to follow to get a successful cashless claim:

  • Inform your insurer about the accident, mishap or any unfortunate event, as soon as your car gets involved in any of these. File an FIR, in case serious injuries or death has happened.
  • Your car will be towed to the nearest network garage by a surveyor sent by the insurance company. An in-depth inspection of your car will be done. Do not move your car from the accident spot without the permission of the insurance provider.
  • An estimated cost of repair work will be issued by the garage, which is shared with the insurer for approval. After this only, the repair work starts.
  • After the repair, invoice and bills are sent to the insurer for payments from the garage. The insurance provider will examine the submitted bills.
  • Once all the verifications and evaluations are completed, the claim amount excluding the depreciation cost and deductibles, is transferred to the network garage. You will have to make the payment of deductibles and depreciation.

Nowadays, in comparison to reimbursement claims, a cashless claim process is no doubt a better option. Therefore, keep the basics of the procedure in mind to get your claim settled easily and swiftly.

Also Read:

Types of Car Insurance Policies in India

Know What is NCB in Car Insurance Online India

Disclaimer: This article is issued in 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-ons For Your Car Insurance Policy

  • Zero Depreciation

    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.

  • NCB Cover

    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%.

  • Engine Protection Cover

    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.

  • Invoice Cover

    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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