Every motor insurance company has tie-ups with garages spread all across the country and are accessible to the residents of each state. These garages are called network garages of the insurance company. To make the claim settlement process easy and hassle-free the motor insurance companies offer cashless car insurance policy for repairs at these network garages. The partner garages settle the bill in a cashless manner by directly settling the bill with the insurance company. Thus, the policyholder does not need to pay the repair amount except for his share of liabilities. This entire process is called cashless car insurance. If you want to know how to access a cashless car insurance policy, read on. 

In case of any mishap, contact your car insurance company at the earliest and report it. In case you cannot take the car to a garage, they will help you in transporting/ towing the car to a nearby network garage where the car will be inspected and repaired. The process is very smooth and will save you from the hassle of running around. The cost will be directly settled between the garage and the insurance company. Apart from saving you from the trouble, these network garages offer high-quality service and spare parts, reducing one more tension of quality!

While investing in car insurance, therefore, it is crucial to check the number of network garages the insurer has. The more the number of garages, the easier and quicker the repair and the claim settlement would be.

Benefits of cashless car insurance:

Cashless car insurance policies entitle you to enjoy certain benefits when it comes to claiming settlements like-

  1. Hassle-free experience
    If your car meets with an accident, all you need to do is contact the insurer and inform him about the incident. If you wish, the insurance company can take over from there. From transporting the car to one of its network garages, getting it repaired, and settling the bill with the insurance company, you don’t need to spend a dime on the repair except for your own liabilities.
  2. Quick claim settlement
    Cashless claim settlements are processed faster than reimbursement claims, which usually take 7-10 business days. It is because the cashless claim settlement process is initiated faster based on the surveyor’s report from the visit to its network garage.
  3. Quality service guaranteed
    The network garages of the insurance companies ensure the high-quality treatment to your vehicle(s) with their quality repairing service. With this, the policyholder gets to stay assured of the best quality service.
  4. Priority in service
    The network garages ensure to treat the insurer’s policyholders with priority and deliver a speedy service. Since the bill is settled with the client, you do not need to make it.
  5. Transparency
    The entire process becomes highly convenient and transparent as the surveyor keeps checking with the network garage from the beginning till the day of settlement. To ensure the garage is not a fraud, an estimate of the repair cost is sent first to the insurance company and the work begins only with confirmation.

Overall, cashless garages make the repairing and claim settlement process very easy, quick, and accessible. It is easier and more convenient than a reimbursement claim where the policyholder remains responsible for submitting all the documents and claiming a file.

How to make a cashless car insurance claim at a network garage?

To make a cashless car insurance policy claim at a network garage, you will need to follow the steps mentioned-

  • Step 1- Intimation
    If your car faces any accident and is damaged, inform your insurance company about it along with the information of the most damaged parts, if possible. Then tow or drive your car to the nearest network garage.
  • Step 2- Gather the Documents
    Complete all the policy-related documents and apply for a cashless repair. For all the parts insured, you won’t have to spend a dime while you might have to pay the deductibles.
  • Step 3- Verification of Paperwork
    On completion of the repairing work, the garage sends an invoice to the company along with necessary documents. On assessing the documents and confirming, the company pays the cost of repairing.
  • Step 4- Bill Settlement
    The insurance company pays only for the parts covered under the insurance. Apart from that, you will have to pay for it from your pocket.

Best Car Insurance Companies Providing Cashless Claim Settlement Facility in India in the financial year 2020-21:

To help you make a well-informed decision when choosing the best car insurance company, given below is a table that showcases the Motor Incurred Claim Ratio and the number of network garages of the top car insurance companies in India in the financial year 2020-21:

Car Insurance Company

Motor Incurred Claim Ratio (2020-21)*

Network Garages

New India Two Wheeler Insurance

78.20%

216 network garages

Go Digit Two Wheeler Insurance

74.91%

2900+ network garages

IFFCO Tokio General Insurance

84.04%

4300+ network garages

Magma HDI Two-wheeler Insurance Package Policy

78.91%

3300+ network garages

Reliance General Insurance

76.89%

6200+ network garages

SBI General Insurance Company Limited

68.10%

SBI has a strong network of cashless garages

ICICI Lombard Two-wheeler Insurance Policy

65.77%

4800+ network garages

Bajaj Allianz General Insurance Company Limited

68.06%

Major garages are covered 

Universal Sompo General Insurance Company Limited

87.96%

3500+ network garages

HDFC ERGO General Insurance Company Limited

70.02%

7600+ network garages

* The motor incurred claim ratio is the total amount of motor insurance claims paid as against the total amount collected across policyholders as premium.

Benefits of cashless garage servicing:

Cashless garage services are beneficial to a great extent during emergencies on roads. While mishaps can take a great toll on your mind and body, cashless garage claims can save you from a financial toll. One of the best options you can opt for in place of a reimbursement claim is a cashless garage claim. It helps you in-

  • Quick and Hassle-free

    The insurance companies have tie-ups with a great number of network garages that make the entire claim process hassle-free and quick.

  • Peace of Mind

    The network garages directly settle the bill with the insurance company which makes it an easy and stress-free process for you. Even the survey from the insurance company is handled by the network garage without you having to fret over it.

  • No hassle of paperwork

    In case of reimbursement claims a lot of proofs like the photocopy of the bill, insurance policy, FIR report, and registration number details have to be submitted. All of these can be easily avoided with the cashless claim settlement process.

  • High-Quality Work

    Network garages provide quality service and replace the damaged parts with good quality parts to make the car work like a new one.

Steps to avail cashless garage servicing:

Unforeseen events can occur anytime. In such a time, knowing what to do and how to apply for cashless garage servicing can make the vehicle repair very smooth.

  1. First, inform your insurer about the mishap, the details of the accident, and the damaged parts through a call or a mail or company app.
  2. Next, tow or drive your car to any network garage and furnish your policy documents. Then claim for a cashless settlement.
  3. A surveyor will soon visit the network garage to inspect the damaged vehicle and process the issue on the claim.
  4. Next, the garage executives and surveyor will discuss the price and the payment that would be done by the insurance company and begin the work.
  5. The garage would then send the bill to the company which clears the bill directly.
  6. If there are deductibles, then you’ll have to make the payment for the same from your pocket.

Cashless garage network in India

The cashless garage network in India has not only made it easy to get the cars repaired but has also contributed a great deal to the management of unplanned finances. It is a lot easier to enjoy a stress-free ride now than it ever was. The cashless garage network helps a great deal in settling claims during unforeseen events. Although you need to pay the deductibles from your pocket and the network garage of your insurance company may be limited as of now, still, they are a win-win situation for everyone, given the host of benefits they come with. 

Cashless garage networks in India are important because-

  • Freedom From Unplanned Financial Burden

    If any mishap occurs on the road, it may leave a deep impact on your unplanned finances apart from damaging your vehicle. You may apply for a reimbursement claim but initially, you’ll have to pay from your pocket. To avoid this, cashless garages are a great option as they settle the bill with the company for all the insured parts.

  • Stress-free Driving

    Cashless garage network helps you to drive safely on the roads while taking the tension of any unforeseen happening on the road and bearing its cost later.

  • Stress-free Claims

    It is much easier to apply for a cashless garage claim and get your car repaired without going through any hectic process.

Conclusion

If someone asks which is better between Cashless claim settlement and the Reimbursement process, there is no fixed answer. Different people might have different choices. If you wish to get your car repaired from a garage, not listed in the insurer’s list, you’ll have to go for a reimbursement claim. Cashless claim settlement makes the entire process very simple and hassle-free for you. This surely is an added benefit that makes it a winner on many levels.