Cashless Service in Two-Wheeler Insurance

While two-wheelers do make it easy for one to commute, one should definitely not miss out on insuring the vehicle against third party damages and own damage. Insuring the bike with third party insurance is mandatory as per the law, and buying comprehensive bike insurance provides one with coverage against damages caused to the bike and cashless service for bike insurance can be availed at the network garage of the insurance company.

Cashless claims service is an additional benefit provided by Two wheeler Insurance companies that enables the vehicle owner to get the vehicle repaired at a garage that is a part of the insurance company’s network, without having to make any out of pocket expense. This, thus, makes it easy for the vehicle owner to claim coverage in an easy way without having to reimburse the cost.

What is a cashless claim?

As the name suggests, cashless claim is a service provided by two-wheeler insurers wherein the insurance company directly settles the claim amount with the network garage. The repair work done is cashless which means that the vehicle owner does not have to pay any amount at the time of claim. This service works similar to cashless service in health insurance.

However, a cashless service claim can only be made if the repair work is done at the insurer's network garage. The network garage list is provided by the insurance company at the time of policy purchase or renewal. The cashless claim amount is only processed after deducting the compulsory deductible and taking into account exclusions if any.

Benefits of cashless claim service

• Stay stress-free

  Cashless claims are convenient because the vehicle owner just has to go through a short documentation and verification process. The owner has to simply take the vehicle to the garage for repair and the insurer and the garage directly settle the bill.

• No need for cash

  With this type of claim process, the vehicle owner does not have to pay anything out of pocket except for the compulsory deductible amount. When the bike is damaged and the vehicle owner is under stress then he does not have to bear the additional burden of arranging the money for repair as it can be done easily without making any payment.

• Accessible and quick

  Today, most insurance companies have a large list of network garages wherein the customers can avail cashless service. Due to this, the claims process has become hassle-free and quick.

Process of registering cashless claim

• In case of an accident caused to a third party, get the registration number of the other vehicle
• Inform the insurance company within 48 hours
• File an FIR in case of an accident
• Fill out the cashless claim form and take the vehicle to the nearby garage
• Submit the required documents like identity proof, address proof, policy number, policy copy, etc.
• The surveyor will inspect the vehicle and the cost of the damages
• Based on the extent of the damages, exclusions and deductible amount
• On approval, the amount will be directly paid to the garage

The compulsory deductible is an amount that the policyholder has to pay out of his pocket at the time of claim and this amount is fixed by the IRDA. As per IRDAI regulations, the compulsory deductible is INR 1000 if the Car is not exceeding 1500 Cubic Capacity and INR 2000 if the Car has Cubic Capacity greater than 1500. Another type of deductible is voluntary deductible which can be fixed by the policyholder at the time of purchase.

There are a lot of scenarios based on which the company can reject your cashless claim. It's best to drive safely. And at the time of claim submit proper documentation and inform the company on time. If you get the repair done before the company’s surveyor comes and checks it then your claim can get rejected as the insurance company would not be able to check the vehicle and estimate the claim amount. Follow the above guide to enjoy a cashless and hassle-free process.

Also Read: Transferring Two-Wheeler Ownership & Its Insurance