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Cashless Car Insurance Policy Usefulness

Published On Apr 27, 2020, Updated On Feb 15, 2022

Cashless Car Insurance Usefulness

People buy car insurance to meet their finances in case of any mishap, such as accident, theft, etc. 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.

Let’s know more about Cashless car insurance

What Is Cashless Car Insurance?

When your car meets with an accident or an unfortunate event like an accident, theft, etc., you request a claim from your insurer. 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 acts as an instant aid in case of any uncertainty and also prevents you from paying any extra repair costs.

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.

Step By Step Cashless Car Insurance Claim Process

These are the steps that you need to follow to get the 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.

What Are the Benefits of Cashless Car Claim?

  • Trouble-Free Experience: With a cashless insurance claim the insurance provider will settle the bill directly with the network garage. For the insurance holder, which means that they will have to do negligible expenses, and all the things are taken care of by the insurer, which makes the process simpler.
  • High Priority Service:Since the network garages partner with the insurance providers, they make sure to provide high priority and best services. This is not applicable to the garages which have not partnered with the insurance providers.
  • Claim Settlement is Faster: Since the cashless car insurance claim takes care of the repair bill directly with the garage the insurance claim goes through at a much faster rate. Moreover, the insurance holder need not spend any of their money other than the excess cost and/or the deductibles of the policy.
  • High-Quality Service: These network garages are guaranteed to be well-qualified individuals who provide authentic parts and fixed prices. The insurance provider makes sure the service in such network garages is of a high quality putting another thing off your mind.

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.

How to Claim for Cashless Facility?

In case your car gets damaged or meets with an accident, in such a situation, you should inform your insurance company about the mishap in detail. The format of informing the insurance company differs from one insurer to another. Also, you should pave a visit to the garage for the inspection of your damaged car. Besides handing over your car keys, you should also inform the garage about your cashless insurance policy in order to take things forward in a proper way.

Can You Visit Any Garage to Avail Cashless Facility?

You should know the network garages which are listed under your car insurance policy after the policy purchase, so when you need to visit a garage you can quickly visit a garage within the network of your insurance company to avail cashless benefit without any hassle. 

How Does Cashless Car Insurance Policy Work?

Most insurance providers in India have tie-ups with some garages that they select on different grounds. As per the policy, the garage repairs your car based on your cover and sends the bill to the insurance company. After thorough verification, the insurance company gives the payment to the garage for repairing your car. However, there are certain parts that are not covered under the cashless car insurance policy. You must check which parts are covered and if some parts that are not covered get damaged, then you are liable to make payment for their repairs.

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.

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