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Significance of Cashless Garage Facility in India


Written by Sumit Arora

Updated Oct 16, 2023

Read to know the importance of a cashless garage which has increased its popularity among people.

What Is A Cashless Garage Facility?

The cashless garages or network garages are partner repair centres of the car insurance company which are authorized by it. These garages are located across the country to provide benefits and convenience to policyholders. If they choose a cashless garage facility during the purchase or renewal of the policy, they can get their car repaired at any cashless garage in case of an accident or a mishap.

When policyholders get their cars repaired at network garages, they get a seamless repair experience as they do not have to pay any amount. In such cases, the insurance company makes the payment for all the repair bills excluding the deductibles and depreciation cost charged on the car’s replaced parts.

Significance of Cashless Garage Facility in India

Benefits of A Cashless Garage Facilities

The greatest advantage of the cashless garage option is that it makes the car insurance claim settlement process quick, convenient, hassle-free, and transparent when compared to the reimbursement claim process. Here are the benefits policyholders enjoy with this facility:

1. Priority Servicing

With the cashless repair option, the policyholders get fast and improved repair services at network garages. Since the garages are in touch with your insurance company, they have to render the service to you on priority without any payment. 

2. Fast Claim Settlement

The cashless repair procedure expedites the claim settlement process as the insurance company directly settles the repair bills with the network garage. Whereas the reimbursement claim process takes around 7-10 days as insurers have to make necessary approvals and transfer the compensation.

3. Hassle-Free Process

The cashless claim settlement process is not just swift, but also hassle-free. It is possible as all the formalities are taken care of by the insurance companies and the policyholders just have to make get the bills verified and make the payment if any. 

4. Transparency

Under a cashless facility, the repair bills and related estimates are sent directly to the insurance company. Also, the surveyor sent by the insurer is involved throughout the process, which together makes the entire process transparent and curbs the possibility of any fraud.

5. Quality Service

Since the cashless garages are authorised by insurance companies, hence, the insurers make sure that the quality service is offered to the policyholder. To ensure this, insurance companies recognise only the best garages in a location to deliver the best service and customer satisfaction.

Importance of Cashless Garage Facilities

Let’s understand the reasons why cashless garage facilities are important for policyholders:

1. Freedom from Financial Burden

An accident or a mishap brings an unplanned financial burden on you. In case of reimbursement claims, you have to pay for the repairs initially, but in the case of cashless garage facilities, you need not pay anything for repair bills after an unfortunate incident as your insurer pays that. 

2. Stress-Free Driving

With this cashless garage facility, policyholders can drive their cars with peace of mind as they do not have to worry about the occurrence of any unforeseen mishaps and expenses arising from it while driving a car which could put a burden on their mental health.

3. Stress-Free Claims

The most significant reason to opt for a cashless garage facility is that policyholders can raise a claim and get their cars repaired without going through any stressful and long claim settlement processes.


The cashless garage facilities are becoming quite useful for policyholders nowadays. Even though sometimes this option comes with certain conditions like limited network garages, compulsory deductible, etc, but it is still a win-win facility for all. Whenever you purchase a car insurance plan, make sure it provides the cashless garage facility for a hassle-free, quick and convenient claim process.

Also Read: 

How To Lower Premium of Your Car Insurance?

Top Factors That Determine The Premium of Your Car Insurance Plan

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.


Written by Sumit Arora

Sumit is an insurance industry veteran with more than 20 years in the industry. Sumit is a frequenRead More


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.

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