Complete Guide of Cashless Car Insurance Policy Online in India

The cashless car insurance service plays an important role in the claim settlement process and car repair service at network garages/self-service repair station, which can reduce the length of time needed for a claim to be processed. Insurance companies have introduced cashless service for garages in their network that helps policyholders to get their cars resolved for free, quick resolutions and quicker settlement of the claim. Cashless settlement needs a quick turnaround as the claim has to be approved before the service is delivered. If it takes too long to approve, the claim may be converted to a reimbursement claim...Read More

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During cashless claim process the insurance company has inspected your vehicle with the help of a surveyor, the network garage will begin the repairs of the insured car. Once the repairs are made, the cashless garage will directly send the repair bill to the insurer.

Advantages of Cashless Car Insurance Policy:

  • Quick & hassle-free claim settlement process
  • Availability of number of cashless garages across India
  • Zero requirement of cash
  • No formalities
  • Superior services
  • Clear, limpid, and translucent.

All about Cashless Car Insurance Online in India

How does a Cashless Car Insurance Policy works?

Insurance companies have a wide chain of garages located across the country where you can avail the cashless claim facility. These network garages provide repair services to the policyholder in the event of an unfortunate mishap.

  • In case you want to file a cashless car insurance claim for any damages incurred by your vehicle, you can first locate the network garage near you.
  • You must then intimate your car insurance provider at the earliest.
  • The insurer will then assign a surveyor to inspect the loss incurred by your four-wheeler.
  • Based on the surveyor’s report, if the insurance claim satisfies the terms of the policy, the garage will repair your vehicle.
  • You will have to pay for the applicable insurance deductible and the depreciation cost for any depreciated parts. You can skip these charges if you have purchased a zero depreciation add-on cover. Furthermore, you might have to pay for any damage that isn’t covered under your car insurance plan.

What is Cashless Claim Settlement Process?

Cashless claim settlement is a facility provided by the car insurance company in which the insurer is associated with authorized garages, which are referred to as network garages. If you want to repair your insured vehicle, you can take it to a network garage to avail cashless claim facility. You won’t be liable to pay for the vehicle’s repair, the insurer will cover all the expenses on your behalf.

All you must account for is the depreciation cost, any deductibles, and any other repair costs, so your final payment will be lighter than usual. A Cashless Claim is possible because of the tie-ups between insurance companies and the garages. The garages that have a tie-up with insurers regarding cashless claim settlements are termed as Network Garages. As the garage and the insurer have a tie-up, the process between the two is streamlined and usually, the claim gets settled quickly and smoothly.

How Does Cashless Claim Settlement Process Works?

A cashless claim settlement process is a process where the payments for claims are made without the need for physical money. The idea behind this process is that it makes paying for a claim much faster and easier. In the past, when a person would make a claim, they would have to wait until the insurance company received their payment before they could receive their payout. This system made it difficult for people to get access to their funds quickly and could take up to 30 days or more in some cases.

The cashless system works by using digital wallets that are linked to an individual’s bank account or credit card. The insurance company then can transfer funds into this wallet and withdraw them at any time without any delay on the part of the individual.

Here are the steps involved in availing cashless claim settlement:

  • If there are any injuries or death following the accident, it is very important to get in touch with your insurance company as soon as possible and file an FIR. Your insurance company will inform you about what steps need to be taken next.
  • The insurer will tow the vehicle to a network garage where it will receive a thorough inspection. Be sure not to touch or move the car until your insurance company gives you permission.
  • Network garage will provide you with an estimate and then the insurance company will make a final decision on whether or not to start the repairs.
  • When a vehicle is damaged, the service station will fix it for you and settle the matter with their insurer. The company's insurer will then make a decision about the damage type and whether you're eligible for any compensation.
  • When all the evaluation and verification is done, a claim payout process will commence.
  • The policyholder will have to pay the amount corresponding to deductibles and depreciation.
  • The insurance company will pay the remaining amount directly to the network garage.
  • If the damage to a car is so severe that repairing it would cost more than it's worth, you might consider it a total loss. Some companies will make an offer to pay you the value of your car after accounting for depreciation.

What is a Cashless Garages in Car Insurance?

Cashless/network garages car insurance only works if a car is sent for repairs at a garage which is a part of the insurer’s network. A network garage is a garage that has an agreement with the insurer to provide cashless car repair services to any of their policyholders. To get access to a cashless garage facility, all you need is to get a comprehensive car insurance policy from a reputed insurance company.

Network garages are service stations where you can avail cashless claims. In case of damages, just take your car to one of these garages and we will cover the repair costs directly! You don't have to pay anything from your pocket.

How Cashless/Network Garages work in Car Insurance?

When looking for car insurance, it is ideal to choose an insurance provider who offers the cashless facility. When you buy such a policy, you can avail repair services for your vehicle at some of the best service stations in India. You also need not pay for the repairs upfront.

Here are the steps involved in availing services at a network garage:

  • The customer purchases a car insurance policy from an insurance company that has a wide network of cashless garages.
  • If the insured vehicle meets with an accident, the policyholder can choose to get it repaired at a network garage.
  • After the repairs are completed, the insurance company pays the service center directly for the work done.
  • The policyholder will only have to pay for the depreciation of replaced car parts and the deductibles. This will be a minimal amount in comparison to the total cost of repair.

Here's a step-by-step guide to make a cashless claim at any Network Garages:

To make a claim at a cashless garage you can follow the instructions below:

  • Step 1: Lodge an FIR and contact your insurer: If you experience any kind of damage to your car, inform your insurance provider as soon as possible. They might need to know about the most damaged parts. Next, take or drive your car to a nearby garage listed on the insurance provider's site.
  • Step 2: Use the tow service provided by the insurer: If you're planning to get your car repaired, make sure you fill in the policy document. You might also have to pay for depreciation and deductibles.
  • Step 3: Pay your deductibles and depreciation cost of your car parts: After the repairs are done, we will raise an invoice for your insurance company and provide them with the necessary paperwork. They will need to verify the documents before releasing payment.
  • Step 4: Let the garage evaluate the damages incurred by your car: The only damages covered by the insurance company are those that happen while you are insured. For any other damages or costs, you would have to cover them yourself.

Benefits of Cashless Garages and Cashless Claim Settlement Process:

Cashless Garages Cashless Claim Process
Transparent pricing Stress-free service
Honest and fair service On-spot claims
Ability to deliver services covered by the insurance product offered No need for cash
Before finalizing any expense estimate, make sure your initial estimation is reasonably accurate. Smooth & Convenient
An experienced mechanics Save time & effort

How Many Cashless Garages are there across in India for Cashless Claim Settlements?

Car insurance companies in India have tie-ups with authorized garages across the country. Such tie-ups can help the policyholder avail of certain benefits in case of emergencies. One of these benefits is the cashless repair facility. This service gives assurance that in case the vehicle of the insured has damaged and needs urgent repair; the insurance company will coordinate and pay the expenses on behalf of the insured.

Car Insurance Company Cashless/Network Garages
Acko Car Insurance 1300+
Bajaj Allianz Car Insurance 6000+
Cholamandalam MS Car Insurance 8500+
Edelweiss Car Insurance 2000+
Future Generali Car Insurance 4000+
Go Digit Car Insurance 5800+
HDFC ERGO Car Insurance 6800+
ICICI Lombard(Bharti AXA) Car Insurance 9700+
IFFCO TOKIO Car Insurance 4300+
Kotak Mahindra Car Insurance 1300+
Liberty Car Insurance 4300+
Magma HDI Car Insurance 3390+
Navi Car Insurance 1100+
Raheja QBE Car Insurance 1300+
Reliance Car Insurance 6200+
Royal Sundaram Car Insurance 4600+
SBI Car Insurance 5000+
Shriram Car Insurance 2000+
TATA AIG Car Insurance 5400+
Universal Sompo Car Insurance 3500+
National Car Insurance 3100+
New India Assurance Car Insurance 3000+
Oriental Car Insurance 2000+
United India Car Insurance 2400+

Conclusion:

Cashless car insurance claims save you a lot of time and effort during a stressful situation such as an accident. Moreover, you can avail the cashless facility along with satisfactory repair services by opting for a network garage. This is how comprehensive car insurance acts as a much-needed backup, offering extensive coverage against various risks.

Most insurance companies in India have tie-ups with select garages. As per the policy, the garage repairs your vehicle depending on your cover and sends the bill to the insurance company. After thorough verification, the insurance company makes the payment to the garage for repairing your car.

However, there are certain parts which are not covered under the cashless car insurance policy. You must check which parts are covered and if some parts which are not covered get damaged, then you are liable to pay for their repairs.

Frequently Asked Questions:

Is it completely Cashless Car Insurance?

While the entire cost of your repair is paid by the Insurance Company, you need to keep in mind that still a small amount of the bill has to be paid by you. This includes:

  • Deductibles
  • Depreciation cost of parts that are replaced
  • Consumables

While the cost of deductibles and the consumables can't be avoided, the cost of depreciation incurred on the replacement of parts can be avoided by you in case you opt for a zero-depreciation add-on for your vehicle.

What are the Reasons that Your Cashless Claim is Rejected?

There are several reasons why your claim might be rejected by the insurer. Here are some instances that might lead to the rejection of cashless car insurance claims in India.

  • Invalid Policy
  • Disobeying the protocol
  • Wrong cover
  • Be aware of your actions
  • Incomplete documentation.

Do I have to pay extra to avail the Cashless Claims facility?

Cashless Claims are a part of the Comprehensive Plan and so you do not have to pay extra for them. Insurers discuss their garage networks as an advantage and make it easy for both parties to settle claims, making it convenient.

Which is better Cashless Car Claim Vs Reimbursement Car Claim?

When you go to repair your insured vehicle in a garage, you are required to pay the whole amount at first. After which you should send all the relevant invoice and documents to the insurer, failure to produce any invoice will result in rejection of your insurance claim. Moreover, reimbursement claims take time to be settled. Hence, cashless claim settlement is better as it saves your valuable time and also you are not required to pay the whole amount.

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