Cashless Car Insurance Process Explained

Who doesn’t like additional benefits? We all do. Be it your life insurance cover or a general insurance plan, additional benefits make sure to add more value over and above the available features. One such benefit is cashless coverage. It was widely accepted, and more and more people began to opt for it. This paved the way for general insurance companies to introduce a similar feature in car insurance plans. Third-party cover is the basic policy that every car owner must opt for. The law, Motor Vehicles Act of 1988, lays down this mandate. Since these policies do not cover your vehicle completely, you can choose to upgrade to a comprehensive car insurance coverage. There are two methods of insurance payouts, reimbursement and cashless car insurance. This article elucidates all you need to know about a cashless car insurance cover.

What is a cashless car insurance policy?

Cashless car insurance meaning is where the insurance companies offer repairs for your vehicle without any additional payment from your pocket. These insurance companies have tie-ups with dedicated and specialised service stations to repair your car. Thus, when you purchase a cashless car insurance policy, you no longer need to worry about paying for the expensive repairs at first and then availing the reimbursement of the expenses. With the convenience cashless car insurance offers, it is advisable to opt for one. When making a claim for cashless car insurance, you need to take your car to one of the network garage facility. A network garage is the one which is affiliated with the insurance company and offers the cashless car insurance facility.

How does the cashless car insurance differ from the standard reimbursement process?

On analysing both types of car insurance policies, we understand that there is no one right answer for which is better. It depends on what your requirements are. If you are someone who has a surplus amount saved for car repairs and other ancillary expenses, you might prefer the conventional reimbursement policy which might be cheaper. On the other hand, those who are hard on their finances may opt for a cashless car insurance by paying a slightly higher premium. Moreover, a cashless car insurance claim is directly settled by the insurance company with the network garage. Unlike the reimbursement mode, you need not settle the claim first and then seek pay-out from the insurance company.

The working of a cashless car insurance claim

A cashless car insurance ensures that you no longer need to pay upfront for the entire cost of repairs. However, this does not mean there is absolutely zero outflow from your pocket. You will still be required to pay for the deductibles of your policy other than which are included in your cashless car insurance policy coverage.

Step by step guide to raising a claim for cashless car insurance

Step 1: The first step in the event of an accident is to inform the insurance company and register an FIR with the police station of the jurisdiction. Step 2: The insurance company arranges for an inspection by a surveyor at the accident spot and arranges to tow your vehicle to the nearest network garage. Step 3: On assessment by the surveyor, a report shall be sent to the insurance company estimating the cost of repairs. After the insurance company provides an approval, then only the repair of your vehicle commences. Certain repairs that do not form part of the policy coverage shall be required to be borne by you. Step 4: Once the repair is complete, invoices are sent to the insurance company. Here, after excluding the mandatory deductible and repair costs outside the policy coverage, the insurance company settles the invoice with the network garage facility. If your vehicle is damaged beyond repair, the insurance company pays the Insured Declared Value as settlement.

Summary

With this, you know all about the cashless car insurance policy. This facility offers convenience and makes raising a claim for vehicle insurance a breeze. Make sure to compare the available options and select a policy that fits your budget and checks all the right boxes.