Cashless Car Insurance

Cashless car insurance is one such advanced feature that motor insurance companies offer to save your time and effort when filing a claim. Read on to know more about the cashless car insurance policy, its benefits, and the claim settlement process.

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What is Cashless Car Insurance Policy?

A cashless car insurance policy gives you the benefit of getting your car repaired without paying anything from your own pocket. Under this type of car insurance, the insurer directly settles the claim amount on your behalf with the service provider/ garage.

Cashless car insurance is a facility provided by a car insurer. They have tie-ups with several garages, known as network garages, across the country. You can get your car repaired from these network garages and the insurer will pay for all the expenses incurred on repairs (excluding deductibles, depreciation, and consumables).

Benefits of a Cashless Car Insurance Policy

Cashless claims have become everyone's preferred choice under a car insurance policy. Here are some benefits of a cashless car insurance policy-

1. Fast and Efficient - A cashless insurance for car policy means your claims will be settled faster with minimal formalities or paperwork. The whole process is easy and hassle-free as no exchange of cash is involved.
2. Transparent Process - In car insurance, there is absolute transparency in claim settlement. The whole process of paying the car repair bill to the network garage is done online and thus, has lower chances of fraud.
3. Convenience - In cashless car insurance claim settlements, the transactions are carried between the network garage and the insurer. Therefore, it is extremely convenient for you as you don't have to get bothered about making the payment.
4. Excellent Services - The car insurance companies usually have a tie-up with the best service centres in the location. So, you can be assured of giving your car in good hands and avail quality services anytime and anywhere.
5. No Stress of Arranging the Cash - If you opt for cashless claims, you do not have to worry about arranging the money to pay the car repair bill and then wait for your insurer to reimburse the amount. Instead, the insurance company directly pays the claim amount under cashless car insurance online to the network garage.

Exclusions of a Cashless Car Insurance Policy

Not every expense will be paid by your insurance company under your cashless car insurance policy. There are some expenses, which you will have to pay at the time of raising a claim for cashless car repairs. They include-

1. Depreciation - It is the gradual decrease in the value of the car and its parts with time. When you file a claim, the insurer deducts this depreciation cost before making the payment. Similarly, your insurer will pay for the repair expenses of your damaged car, excluding its depreciation cost, unless you have a zero depreciation add-on cover
2. Deductibles - It is an amount that needs to be paid by the insured car's owner at the time of claim settlement. Deductibles in car insurance can either be compulsory or voluntary. Compulsory deductibles have to be mandatorily paid by you based on the cubic capacity of your insured car's engine. In the case of voluntary deductibles, you voluntarily agree to pay the deductible amount to decrease the car insurance premium amount. Hence, your insurer will not pay for deductibles during the cashless settlement of your claims.
3. Consumables - It includes materials like fuel-filter, nuts-bolts, screws, grease, and oils that are consumed for the repair of the car. The cost of consumables will not be covered unless you have a consumables add-on cover.

Cashless Vs Reimbursement Car Insurance Claim

Cited below is a table highlighting the differences between cashless and reimbursement car insurance claims:

Network Garages of Different Car Insurance Companies

Here is the table that shows the number of network garages and the claim settlement ratio of different motor insurance companies in India:

*Disclaimer: This table lists insurance companies alphabetically. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by the insurer. This list comprises insurance products offered by all the insurance partners of Policybazaar. For a complete list of car insurance companies in India, visit the official website of IRDAI (Insurance Regulatory and Development Authority of India).

Claim Settlement Process of Cashless Car Insurance

To avail service at partner or network garages on a cashless basis, follow the below steps to raise a cashless car insurance claim-

• Purchase a cashless vehicle insurance policy for availing services at the network garage of your insurer.
• When your insured car gets damaged, take it for repairs at the nearest network garage.
• Once the repairs are done, the car repair bill is sent to your insurer.
• The insurer will examine the bills received from the network garage.
• After verification, the claim settlement process will begin.
• You will have to pay the amount for the deductibles, depreciation, and consumables.
• Your insurer will pay the remaining bill amount directly to the network garage.

How to Find Network Garages to Avail Cashless Car Repair Services?

The list of network garages of your motor insurance company is provided with your policy documents. You can also find the list of garages on the insurer website. To avail of cashless repair services for your damaged car, you can visit the nearest network garage in your location.

However, there could be times when all network garages are out of your reach, and you need to get your car repaired urgently. In this case, you can get the car repaired even at a non-network garage, pay the repair bill and keep the bill and payment receipt carefully. Then, you can raise a reimbursement claim so that your insurer compensates you for the damages sustained by your car under your policy.

Conclusion

A cashless car insurance claim is a convenient and transparent mode of claim settlement for both the car owner and the insurance company. However, certain expenses are not covered under the cashless car insurance policy. Thus, you must check all the terms and conditions and then raise a claim against your cashless car insurance policy online.