It is elucidated by many and at large that car owners need to have a car insurance policy. The Motor Vehicles Act of 1988 makes it mandatory. When it comes to selecting a policy, you primarily have two choices - third-party and a comprehensive cover.
A third party car insurance
policy protects you (the policyholder) only from liabilities that may arise in case of an accident resulting in injury or property damage. On the other hand, comprehensive plans compensate for the lack of cover for their own damage. Further, these plans have additional features like roadside assistance, conveyance benefit, key replacement and more that are optional. Having these features can come handy. But along with them, a notable feature to check in your policy is the cashless car insurance cover.
Cashless car insurance - Meaning
Cashless car insurance is a medium of payment where the insurer directly settles the bill with the service garage in case of an accident or damages. This facility provides you with quick assistance for any damages that need to be fixed. By availing the cashless car insurance facility, you can avoid any hassles of paying first and then filing for a claim can be avoided.
When approaching the insurer for a cashless car insurance facility, you must note that the repairs need to be done at a network garage. Insurance companies have affiliation with service stations that are included in the list of network garages. Any repairs carried out at a service station outside the list of network garage is not eligible for a cashless facility. Further, 100% of the claim amount isn’t cashless and you need to bear the deductible which is defined as per policy terms.
What are the benefits of a cashless car insurance policy?
The convenience of a cashless car insurance policy
makes it easy on your wallet. You do not have to pay the cost of repairs up front. The insurance company takes away your financial burden for the majority part of the repairs.
#2 Fewer hassles:
As compared to the reimbursement plan, a cashless car insurance policy has fewer formalities when it comes to claim documents. You have to intimate the insurance company for the repairs. An inspection shall be arranged by the insurer and the repairs will commence after that.
#3 Faster claim process:
The claim times in case of cashless car insurance is much lower since the insurer directly deals with network garage. These network garages are affiliated with the insurance company and help to reduce the lag time in coordinating the various formalities.
#4 Better resolution:
Since there are tie-ups by the insurer with the network garages, the quality of service is better and quicker. This results in higher customer satisfaction and quicker dispute resolution, if any.
Since the insurance surveyor is involved since the beginning of the process, there is a genuine case of billing and other costs required in the repairs. This benefits both, you, the policyholder as well as the insurer.
What is excluded from your cashless insurance policy?
Not all expenses are covered when using a cashless car insurance cover. The deductible, depreciation and the cost of consumable spares are required to be borne by you. Since the deductible is a regulatory mandate, it needs to be paid at the time of each claim. Further, as your vehicle’s age increases, the depreciation of the damaged spares needs to be borne unless you opt for a zero-depreciation cover. Lastly, consumable spares like the engine oil, lubricants, etc. are not covered under cashless car insurance.
These are some of the necessary tips that will help you ease the process of making car insurance claims via the cashless route. Not only does it ease the entire insurance claim
process, but also speeds things faster.