Cashless Car Insurance
Published on May 21, 2020. EST READ TIME: 5 MIN
Cashless car insurance is a way of raising claim after an accident or mishap occurs, where the insured doesn’t pay for the damages, and instead, the insurer directly settles the bills with the workshop. A cashless claims process provides you with instant assistance from the insurer in terms of payments for the damages, after an unforeseen incident takes place. This saves the insured from the trouble of paying the expenses first and then filing for the claim via the reimbursement process.
Remember that the cashless claims can be made only if the car is sent to the designated repair workshops or garages that are included in the list of the policy document. Also, the entire claim is not cashless since there are deductibles which need to be borne by the insured to account for depreciation, which is not covered in the cashless claim.
Cashless Claim Settlement Process
In case an accident occurs, the insured needs to immediately inform the insurer, who in turn will senda surveyor and help tow your car to the nearest designated garage or workshop. The garage then submits an estimated cost of repairs to the insurance company and starts repair work only after receiving approval. The payments are made at the end by the insurance company, directly to the garage, after subtracting the deductibles and depreciation. These Minimum deductible and depreciation are paid by the insured to the garage.
Exclusions: Deductibles, Depreciation and Consumables
The minimum deductible is an amount that Is defined in the policyand needs to be borne by the insured in case of an accident.
The depreciation, on the damaged parts is derived from the vehicle age and increases with every passes year(max 50% post 5 years),and same needs to be borne by the insured,. Cost related to any consumables, like engine oil, lubricants, etc. are borne by the insured.
Usefulness of Cashless Car Insurance
Cashless claim is a highly convenient option since you do not have to pay for the damages first and worry about those sudden payments that are required. The insurance company takes care of the financial burden of any damages to your car, while only the deductibles and depreciation need to be paid by you.
Less formalities than reimbursement option
The reimbursement option requires submission of the filled reimbursement form as well as supporting documents, which is a hassle. Cashless claims have lesser formalities involved, and so are better suited for today’s fast-paced world.
Cashless claims are much faster since the surveyor sent by the insurance company is involved immediately since the mishap, because of which, the entire process gets to speed up. Since the repair work doesn’t start until approval is received from the insurance company, they send estimates immediately and get approvals at the earliest to expedite their payment. This makes the entire process faster and claims are received quickly.
Best in class service
The insurance companies tie up with the best in class garages and workshops that fulfil their quality criteria. So, the insured gets better service and higher satisfaction.
Since the surveyor sent by the insurance companies is involved from the very beginning, the entire process is transparent and the insured as well as insurer are assured of genuine billing, since the estimates are sent at the beginning before any repair work commences.
Overall, it can be said that cashless car insurance can make your life quite easy. Not only is the process convenient, transparent and simpler than the reimbursement process, but also the customer satisfaction is high,thanks to the better service and repair quality provided by authorized car workshops.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
This blog has been written by
Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry
A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.
Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle".
This blog has been written by
S. Gopala Krishnan | Motor Insurance Expert | 40+ years of experience in insurance industry
A veteran in insurance industry. S. Gopala Krishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.
Mr.S. Gopala Krishnanrecommends"HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process."