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Significance of Cashless Facility in Two-Wheeler Insurance Policy

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In India, a large percent of the population uses two-wheelers to commute because of their convenience, affordability, and lower maintenance. As with all other types of vehicles, having a third-party insurance coverage for your bike is also mandatory as per the legal guidelines.

Ensuring you have a valid insurance policy every time you ride your bike is important. In addition to the policy coverage,some plans offer cashless facilities. This service enables you to repair your two-wheeler at any of the network garages, which have a tie-up with your insurance company, without any upfront payment.

The cashless facility has gained popularity, especially in health insurance. However, insurers offer cashless insurance for a bike in order to provide additional convenience.

What is a cashless claim?

When you file a cashless claim, the bill is directly sent to the insurer after the completion of the work. After checking the details, the insurance company pays the amount to the garage. You may only need to pay the compulsory deductible, which is a small amount.

Compulsory deductible

The compulsory deductible is the amount that you pay from your personal sources before the insurer settles the claim. For two-wheeler insurance, this amount is INR 100 per claim.

How does cashless claim work?

You need to take your two-wheeler to one of the garages or workshops within your insurance company’s network. The list of garages or workshops is easily available on the insurer’s website. It may also be listed in your policy document. Alternatively, you may call the customer service number to avail of this information.

When you take your bike to an authorized service center, an inspection by the insurance company’s representative is undertaken. The representative will approve cashless insurance for a two-wheeler. Once approved, the workshop commences the repair work. On completion of the work, the bill is sent to the insurer along with other necessary documents. The insurer evaluates and verifies the bill before paying the amount for the workshop.

When you apply for cashless bike insurance, remember the insurer will only settle those repairs that are covered under the policy. In case, the repairs involve accessories or gadgets, you will have to bear the costs for the same.

Benefits of cashless facility

Relief from stress

The biggest benefit of a cashless claim facility is the relief from stress. This is because you only need to pay the compulsory deductible.

Quick and hassle-free

Most insurance companies have a large number of garages and service centers within their network. HDFC ERGO includes more than 4,800 authorized garages to offer a cashless facility to its customers. The entire process to file such claims is quick and hassle-free.

No need for cash

In case the repairs are uninvited, you may not have the entire amount needed in cash. However, this does not mean that your bike will not be repaired. You only need to find the closest network workshop and ride there. The authorized service center completes all other formalities and repairs your bike.

The cashless feature is a major advantage and gives you peace of mind while riding your bike. You may be assured that any breakdown will be repaired without any delay by an authorizedgarage in a quick and hassle-free manner.