Amidst the rising digital adoption, cashless claims are rapidly gaining popularity. This cashless concept was first introduced in the health insurance sector. However, with the increasing popularity of this concept, general insurers have started providing it for motor insurance plans too.
Cashless car insurance allows policyholders to claim their financial coverage and receive monetary assistance during bill payments so that they do not need to wait for reimbursement later. This cashless facility is a saviour for individuals who fail to save substantial amounts for emergencies. Under cashless insurance plans, the insurance provider directly settles the amount claimed by the policyholders on behalf of the garage/service provider.
Read on to know more about this policy:
A cashless claim refers to a scenario where the concerned garage directly settles the bill with the insurance company. Individuals only need to account for the depreciation, repair, and deductible costs not included in the policy. One of the essential advantages of this cashless car insurance policy is that individuals do not have to arrange for a substantial repair cost during an emergency.
Most reputed insurance companies partner with selective cashless garages collectively referred to as ‘network garages’. According to the policy, the concerned garage repairs the vehicle. The repair bill is sent to the respective insurance company based on the financial coverage.
After conducting a thorough verification, the insurance provider pays the garage for repairing the car. However, certain car parts are not included in the policy. The policyholders must check the parts that are not covered, and in case of damages, they will be liable to pay for them.
The cashless car insurance plan has become a preferred option for many. Here are some of the benefits discussed below:
The estimated vehicle repair bill is sent to the concerned insurance company before the work begins. One of the surveyors from the insurance company is roped into the process from the beginning. Hence, both the insurer and policyholder are provided with an accurate estimation by the network garage. This entire process makes the cashless insurance claim transparent.
As soon as any unwanted incident occurs, the surveyor from the concerned insurance company gets associated with the process. This speeds up the entire process as the surveyor sends the bill to the insurance provider at the earliest as repairs can’t be done until approvals are received.
The cashless claim car insurance does not come with formalities. However, in the case of reimbursement claims, individuals are required to submit the necessary documents and the reimbursement form, which makes it troublesome. Nevertheless, this facility is better compared to its traditional counterpart.
In a cashless insurance claim, policyholders are not required to pay for sudden damage expenses, aside from depreciation and deductibles. This makes it convenient, easing the financial burden.
No Requirement of Arranging Money
In case of emergencies, policyholders can get the vehicle repairs done from network garages without worrying about finances. Since the concerned insurance company directly pays the amount to the network garage, there is no need to arrange money for repairs under the online cashless car insurance plan.
Usually, the insurance providers partner with some of the best garages and service centres. So, individuals can rest assured that their cars are in good hands, receiving quality services.
Individuals applying for a 4-wheeler insurance policy from insurance corporate agents like Bajaj Finance Limited can avail of different financial coverages, like third-party liability, personal accident cover, and more. In addition, these insurance policies extend add-on benefits like roadside assistance, etc.
Furthermore, in the third-party car insurance policy, individuals can settle their claims easily with multiple services. Besides, the application process for this insurance plan is simple and straightforward. One can apply right from the comfort of their home by filling out the application form with personal details and paying the fee.
The exact process to raise a cashless car insurance policy claim might vary from one insurer to another. In addition, there might be minor changes in the process depending on the concerned insurer’s tech support and strategies.
Here is a stepwise guide to raising a claim for a cashless car insurance policy:
Step 1 - Contact your concerned insurance provider. Nowadays, many reputed insurance providers have their own websites or apps to begin the claim process.
Step 2 - Share necessary details about the car damage
Step 3 - Follow the process stated on the website. For example, in case of theft, the policyholder may be asked to file an FIR and submit the same, along with other necessary documents.
Step 4 - In case of accidental claims, the surveyor might physically visit the accident spot. Otherwise, the damaged car needs to be taken to the network garage, and the surveyor will carefully look at the damages.
Step 5 - After careful assessment, the policyholder will be informed about the repair cost and the amount covered by the respective policy, depending on the coverage and applicable norms.
Step 6 - The vehicle will be repaired, and the insurance company will settle the amount. However, the deductibles will be paid by the policyholder to the garage.
Individuals with a third party car insurance cover can raise the claim by following the above-mentioned process. However, one must note that this insurance plan will provide no financial coverage to the vehicle owner or driver.
Therefore, to sum it up, cashless claims are certainly an effective option during emergencies and a preferred choice for reimbursement claims. Moreover, it is a convenient and transparent process for both the insured and the insurer.
With each passing year, where other insurance premiums tend to rise, car and bike insurance have a beneficial NCB, bringing down premium amounts.
No Claim Bonus is simply a perk given to policyholders for not making a claim in previous years. NCB in motor insurance can fetch up to a 20-50% discount on the payable premium amount by maintaining a claim-free record. NCB is not related to the make or age of the vehicle but solely on the claim record of the policyholder.
While purchasing a comprehensive motor insurance policy, you are generally not eligible for NCB unless in the case of NCB transfer. The policyholder will be eligible for NCB on the first renewal of the motor insurance policy, starting from 20%. This is applicable only if no claims have been made in the preceding years. The discount increases with every claim-free year up to a maximum of 50% at the end of five claim-free years.
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