Does Your Car Insurance Have a Cashless Claim Facility?

Cashless insurance was first introduced in the health insurance sector where it started to gain popularity. This led the general insurance companies to bring this concept into other areas like car and bike insurance, home insurance, etc. The Motor Vehicles Act makes it mandatory to have an insurance policy for all car owners. While a third-party car insurance is a minimum requirement, you can upgrade your coverage to a comprehensive policy.

Now coming to insurance payouts, there are two methods – cashless or reimbursement. This article elaborates on the cashless facility available for car insurance plans.

What is cashless insurance?

Insurance companies have tie-ups with service centres for hassle-free repairs to your vehicle. Here, you need not worry about arranging funds for the cost of repairs and damages at insurance claim. Thus, the convenience scales above all benefits to rank higher.

An understanding of cashless insurance cover

When you are searching for car insurance online, make sure you purchase a policy with a cashless facility where the insurance company takes care of the repair costs. Barring a few expenses like the deductible, you need not pay for the repairs.

How does cashless claim work?

To raise a claim using the cashless facility, you need to take your vehicle at one of the listed network garages. These network garages are affiliated with the insurer where a cashless facility can be availed. For other service stations, you might be required to pay from your own pocket at first and then claim a reimbursement. Since you choose to repair your vehicle at a network garage, the insurance claim process is faster with lesser need for documentation.

Step by step process to make a claim using the cashless facility

Here is a detailed step by step process for you to understand how to make a claim using the cashless insurance facility.

Step 1: In the event of an accident or damage, the first step is to intimate the insurance company, and if need be, file an FIR with the police station of that jurisdiction.

Step 2: The insurance company will arrange an inspection at the spot by a surveyor and tow your vehicle to the nearest network garage.

Step 3: On assessment of the damage at the network garage, the estimated cost of repairs shall be sent for approval to the insurance company. Only after the approval, the repairs shall be commenced. Any repairs that do not fall in the scope of your policy shall be required to be paid from your own pocket.

Step 4: On completion of the repairs, all invoices shall be sent to the insurance company. At this stage, you shall be required to pay for the mandatory deductibles and other expenses that do not fall in the purview of your policy while your insurer settles the balance amount directly with the network garage. In case your vehicle is damaged beyond repair, the insurer shall pay the IDV of your vehicle as compensation.

Note the above benefits and the easy steps that make using a cashless insurance facility a breeze. While you select from myriad choices, make use of a car insurance premium calculator that can assist not only your first purchase, but also car insurance renewal.