Cashless Car Insurance Policy

Cashless Car Insurance came into existence as insurance companies in India tasted massive success in offering cashless treatment in the health insurance segment. The concept of providing cashless claim service became immensely popular among the customers as well as the insurers. Customers were able to get an instant cashless claim facility without paying anything from their own pockets. Insurers were able to sell more policies and offer better services to their customers.

Today, almost all car insurance companies are offering cashless car insurance policies to their customers. Insurance companies have tie-ups with selected car garages which are ready to provide cashless repairs to their customers. The insurance company pays the repair bill to the garage based on the car insurance plan's terms and conditions. The applicable deductibles and depreciation value have to be paid by the customer, which is very nominal against the actual bill.

Cashless car insurance policy means an individual who has a cashless comprehensive car insurance policy can quickly get their vehicle repaired. These repairs can be done at any car garage listed in the car insurance company’s network. The bill is sent to the insurer, and the reimbursement is made as per the cashless car insurance​ policy.

The process is quick and hassle-free. Suppose the customer has attached additional add-ons like Zero Depreciation, Consumables Cover, etc. In that case, he does not have to pay for the depreciation value of the parts replaced and consumable items used like nuts, bolts, oil, grease, etc.

There are several benefits of a cashless car insurance policy, such as:

• Hassle-free Experience

Since it is a cashless garage, meaning a garage that is part of the insurer’s garage network list. You can enjoy a hassle-free and quick claim process as everything will be handled by the insurance company itself.

• Priority in Service

The garages empanelled by an insurance company on its network give priority service to the insurer’s policyholders. Therefore, at these network garages, you can expect to get your car repaired soon.

• Quick Claim Settlement

A cashless claim is settled at a much faster pace by the insurance company than a reimbursement claim. Under a reimbursement claim, the insurer takes 7 to 10 working days to settle the claim. Insurer checks billed items against the items covered under the policy. A cashless claim is settled at a network garage only. The repair work begins only after receiving approval from the insurer; hence it becomes much faster.

• Guaranteed Quality Service

Every insurance company ensures that high-quality service is given to its policyholders.

Now, if you are wondering how to make a cashless claim on your comprehensive car insurance policy. You need not worry, have a look at simple steps for performing a cashless car insurance claim:

• Step 1: If, unfortunately, your vehicle gets involved in an accident, contact the insurance company as soon as possible. On receiving the claim intimation, the insurer sends a surveyor. Surveyor assesses the case and helps move your damaged vehicle to the nearest cashless garage.
• Step 2: Complete the claim documentation and get them approved for cashless repair. Besides, you may have to pay for depreciation on some parts of your car. Deductibles also become applicable if you have not attached add-ons like zero depreciation, consumables cover, etc.
• Step 3: After the repair work is done, an invoice is raised by the garage. The invoice is sent to the insurer along with the necessary documents. After assessing and verifying the documents, the insurer would release the payment to the garage.
• Step 4: The Insurance Company will only pay for the damages covered under the plan offered. If any damage is repaired but not covered under the car insurance plan, you will have to pay for such costs.

In order to make your work easy we have listed down top 5 car insurance companies you consider buying your cashless car insurance plan from.

Disclaimer: *The above details are collected from the website of the insurance companies listed above. The incurred claim ratio data is sourced from the IRDAI Annual Report 2019 - 20. Last updated on 12-03-2021.