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Understanding Frequently Asked Cashless Motor Insurance Questions

Motor Insurance

As a vehicle owner in India, insurance is a mandatory norm besides the usual registration, PUC of your vehicle and carrying a driving license. The Motor Vehicles Act of 1988 lays down this legal requirement and hence, no vehicle owner must skip buying an insurance cover.

However, when selecting a motor insurance online, you need to keep in mind the policies available for purchase. There are two policies that you can choose from based on the coverage—a third-party plan and a comprehensive policy. But apart from the coverage these plans offer, you must also consider the way the claims will be settled. Based on the settlement of the insurance claim, your policy can either be a reimbursement plan or cashless plan.

Reimbursement policies are those for which the insurance company compensates the cost of repairs. Thus, you need to pay first followed by the reimbursement claim by the insurer. On the contrary, a cashless policy vastly differs. This article discusses the frequently asked questions surrounding cashless motor insurance plans.

What is a cashless motor insurance policy?

A cashless policy, as the title suggests is a plan where you, the policyholder need not pay for the repair costs to your vehicle. The insurance company directly settles the expenses of repair with the service garage on your behalf. * Standard T&C Apply

How do cashless plans work?

When buying a motor insurance cover, you must first check if the policy extends cashless repair facility. If yes, all your repairs can be carried without minimal payment from your pocket. However, there are certain conditions for a cashless claim. The repairs need to be made at one of the network service-garages. Also, the repairs can be started only after the insurance surveyor has assessed the damages and the insurance company has approved such repair cost. Only the expenses that fall under the policy’s purview are covered in the cashless repair whereas any additional repair, if required, must be paid by you.* Standard T&C Apply

What is a network garage?

A network garage is an affiliated service station that has a tie-up with the insurance company. Repairs at such network garage by the policyholders of such specified insurance company can avail a cashless repair.

Where can you find the list of network garages?

Every insurance company that offers cashless repairs has an association with certain garages around the country. Here, all your repairs can be made in a cashless manner. The list of such network garages can be found either in your policy document or on the insurance company’s website.

What should be done if there is no network garage at the place of accident or breakdown?

If there is no network garage located near the place of the accident, you can either tow your vehicle to the nearest service garage or can go ahead with repairing your vehicle at a standard service station. However, the repair costs at such standard service station shall not be paid on a cashless basis, but instead will require you to pay upfront followed by the reimbursement later.* Standard T&C Apply

Are cashless claims entirely cashless?

While the title suggests as a cashless plan, it isn’t entirely cashless in nature. You need to pay a nominal amount from your own pocket known as the deductible. Such deductible is payable each time you raise a claim and hence, no cashless plan is 100% cashless.* Standard T&C Apply

These are the questions surrounding cashless motor insurance plans that will help you opt for such facility at your next motor insurance renewal. A vehicle insurance calculator is another handy tool that can be used to determine the impact of the different. So, make an informed choice with these FAQs making it easier to understand the concept.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.

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finance blogger

The idea of starting a blog has been hitting me for long; I took it seriously after falling into a spiral of debt and recovering from it.

I have been anxious all through the financial difficulties. I see that same anxiety in the eyes of people, whose ill fate has put them at odd with financial repose.

It makes me compassionate. Out of this compassion and goodwill, I started this blog. I wanted to help all those, who are facing financial distress.