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Insurance Article

What is Cashless Motor Insurance All about?

November 10 2015

Out-of-pocket expenses can be overwhelming


Contact the insurer at the earliest


Network of authorized and equipped garages

Cashless settlement of claims is the latest trend. 

Here are some answers to help understand better how cashless motor-insurance saves time and effort in our fast-paced lives:

1. What is cashless motor insurance?

Cashless motor insurance allows the insured access to garages where they do not have to pay upfront for the damages covered by insurance. The insurer settles the claim on the owner's behalf.

2. How do I avail cashless garage facility?

While buying a comprehensive car insurance policy for your new car, check if the insurer offers cashless garage facility. Used car owners too can avail this service. However, the insurer's discretion is applicable when extending this service to used cars.

3. What if I am unable to avail the services of a cashless garage?

There could be times when authorized network garages maybe out of reach and you have to avail the services nearest to you. In this case, you can get the damages fixed and get a service bill for the same. The insurer will then reimburse you for damages that are covered by your policy.

4. Do I have to contribute towards any damages or will the company pay the entire claim?

You are required to pay the deductibles as agreed to in your insurance contract. Deductible is the amount you have to pay out-of-pocket towards a claim before the insurance company pays the rest. Also called excess, this percentage is usually defined by the insurer when you purchase insurance. However, most insurers will allow you to increase your excess to reduce your premium.

5. Will the insurer pay entirely for the incurred loss?

The insurer will pay for damages minus the excesses as agreed to in the contract.

6. What are the excesses I may have to bear as part of the claim?

y types of excesses that can apply in different situations or apply concurrently. It involves compulsory deductions as agreed to in the policy and in case of total loss, the amount of depreciation as per the rate prescribed under the Indian Motor Tariff.

7. What to do when I meet with an accident?

Don't panic. Report the claim to the insurance company as soon as possible. Keep your insurance documents and bills handy for the insurance company to assist you at the earliest. Approach the nearest network garage for services.

8. What is a network garage?

A network garage is one that is authorized by the company and is capable of servicing claims for the vehicle-make owned by the customer.

9. Where can I find the list of garages in my city where I can avail Cashless Service?

The list of network garages is available on the insurer's website. You can even call their helpline number to receive instructions and guidance to the nearest authorised garage.

10. Where can I service my car if I have signed up for cashless claim?

Most insurance providers have their own network of garages and you can avail cashless facility only with these. At any other garage, not falling in the network of the insurer, cashless facility is not applicable. However, the insurer will reimburse you as per the insurance contract.

11. Why do I need a cashless claim facility?

The key benefit of having a cashless claim facility is relief from stress, since the insurer directly handles the expenses. Besides the essential deductibles, he remains hassle-free regarding the settlement of expenses for the car damage. The cashless claim facility for car insurance is a boon for policyholders. It may not be possible to have cash on hand always. This is precisely where cashless claim comes in handy. The free pick-up, towing and car wash facilities can prove very handy especially when you find yourself cut-off from assistance in remote areas.

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