All vehicle owners in India are aware of insurance being a mandatory norm to legally drive a vehicle alongside its registration and PUC. The Motor Vehicles Act of 1988 lays down the legal requirement of such motor insurance coverage. However, when it comes to selecting a motor insurance plan, be private or commercial vehicle insurance online or even offline, there are two broad categories of policies. They are classified by the nature of the claims, i.e. reimbursement or cashless.
In a reimbursement policy, the insurance company compensates for the cost of repairs, thereby requiring you to pay first which is followed by the reimbursement of such expense. But that is not the case for cashless policies. This article addresses common questions about cashless motor insurance plans making it simple for you to decide upon. Let’s have a look:
What are cashless motor insurance policies?
Cashless motor insurance, as the title suggests, is a policy where the policyholder do not need to pay for the repair costs to the service garage. All the expenses are directly settled by the insurance company on behalf of the policyholder.
How do cashless motor insurance work?
When you buy a motor insurance policy, you first need to check if the policy offers cashless insurance coverage. All claims made using such cashless policy do not require you to pay for the repair costs. But there are certain conditions for it. The repair must be carried out at a network garage only. Also, the repairs can be started only after a surveyor assesses the extent of damage after which the insurance company sanctions the repairs. Only those expenses that covered by the cashless bike insurance or car insurance are paid by the insurer. Any other expenses need to be paid by you.
What are network garages?
Network garages are list of affiliated service stations which have tie up with the insurance company. Any repairs carried out by policyholders at such centres are directly settled by the insurer if they hold a cashless insurance policy.
Where is the list of network garage mentioned?
Every insurance company that has affiliated service garages and offers cashless claim facility mentions the same on the policy document. In addition, the same information can be found on the insurer’s website too.
What if there is no network garage facility?
In the event there are no network garages located nearby at the place of accident or breakdown, you can proceed to get you vehicle repaired at any other service garage and claim a reimbursement of the expenses.
Is the cashless motor insurance facility entirely cashless?
The honest answer is no. Every motor insurance policy has some amount of deductible that you need to pay from your own pocket. These deductibles are of two types—compulsory deductible and voluntary deductible. The compulsory deductibles are mandatory in nature and thus, even for cashless two or four wheeler insurance policies, you will be required to bear such deductibles. If you opt for voluntary deductibles, you are required to pay for it as well before the insurance coverage kicks in. * Standard T&C Apply
With the common questions regarding cashless motor policies addressed, make an informed choice as to which policy you must buy. Also note that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
