The concept of cashless catering has been around for quite some time now. From availing daily lunch at the hostel’s mess to enjoying rides at the amusement park – we all have availed the benefits of cashless catering.
In the world of insurance, this concept has really caught up with the health insurance policies. That is why you can now obtain instant entry into a hospital and avail medical facilities in case of emergencies by paying only the concerned hospital’s admission fee. The expenses on the medical treatments are later borne by the insurance company.
The popularity of the feature has been such that cashless services have also been introduced into car insurance. Leading players in the segment are offering ‘cashless garage’ facilities to their policyholders. Surprised? Find out more!
The Indian Motor Vehicles Act of 1988 mandates that all motor vehicles must be insured in respect of the user’s liability for death, bodily injury or damage to property of the third party. But apart from the standard motor vehicle cover, nowadays the insurance companies also offer cashless facilities to settle claims.
Under the cashless cover, the car owner can have the insured vehicle repaired at any garage that has a tie-up with the insurance company. The best part is that the car owner is not required to pay for the expenses upfront; the insurance company will settle the bills once the repairs are done.
Here’s the catch! You can’t visit the closest garage of your choice to avail the cashless services. The garage needs to have a preempted tie-up with your car insurance company.
No more Mayday Calls
In case of any damages to your vehicle because of an accident, immediately inform your insurance company about the repairs required to be done. Furnish all the important documents to the authorized garage. And, simply wait for your car to get back to you, as good as new! Theoretically, the car owner has to pay only for the compulsory deductibles as per the policy terms.
How does it Work?
Now we know that car insurance companies have tie-ups with certain garages and service centers, particularly those which are popular in their respective locality.
Most insurers furnish the policyholders with a list of authorized garages in their network. The list is also available on the insurance companies’ official websites. In fact, even your car insurance agent will be able to help you with this. Alternatively, every insurance company has a TOLL FREE number these day, from where one can get all the details of the cashless service centers.
The essential part of the tie-up is that, in the event of an accident-led damage, the garage/service center repairs the policyholder’s car as per the cover applied for. Once the inspection of the car is carried out and an approval for the cashless settlement is issued, the service center repairs the car and forwards the bills and other necessary documents to the insurance company for final settlement. The insurance firm then thoroughly evaluates the bill, verifying and investigating every detail before paying the bill amount to the garage.
Piece of Cake? Hold on!
The cashless service of a car insurance policy is immensely helpful, particularly when such need for repairs arise uninvited. Here you need to remember one thing: the insurance company will pay only for those damages that are covered under the policy. If parts of the car, such as gadgets, engine etc, which are beyond the policy cover, suffer damages, the car owner has to pay for its repairs.
There may also be instances where the cashless garage facility is not available. If your car breaks down in the middle of the road, a roadside assistance facility is available, which is different from the cashless garage feature of your vehicle’s insurance policy.
Coverfox Wisdom: Get Cover, Get Going
The cashless settlement claim provision is a huge advantage for all policyholders. There may be times when the repairs are unavoidable and there is little money to spare. This is exactly when cashless claim comes in to good use.
At Coverfox, we provide the best services when it comes to understanding and picking the insurance policy that suits your vehicle. Don’t follow the herd, simply call us!
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