All You Need To Know About Having A Cashless Car Insurance Policy

Feb 14, 2020 2 min read
All You Need To Know About Having A  Cashless Car Insurance Policy

The automobile sector has been one of the biggest beneficiaries of the cashless insurance policy as it brings a lot of convenience for the policyholder.

Healthcare was the first sector where the concept of cashless insurance was introduced to provide hassle-free claim settlement for patients. Over the time, the convenience of cashless settlement has reached other sectors as well.

How does it work?

Under the cashless insurance facility, the insurance provider makes tie-ups with garages over different geographies. These car repair facilities are termed as network garages. The car insurance holder can get the car repaired at these network garages to avail cashless facility. Under the scheme, the insurer is not required to bear the expenses at first and then ask for the reimbursement of the amount as a part of a claim. Instead, the insurance company will pay directly to the garage on behalf of the policyholder. You are only supposed to pay nominal file charges and depreciation charges if the policy is not zero dep, depending upon the make and engine of the vehicle.

Here are the steps involved to get a cashless claim:

#1 First and foremost, you need to buy a cashless car insurance policy.

#2 In case the insured vehicle meets an accident, the policyholder can take the damaged car to the nearest partner garage for repairs.

#3 You need to provide a few essential documents including a valid driving license, RC (registration certificate) PAN card and Aadhar card for verification of the vehicle and driver.

#4 an officer from the car insurance company will inspect the vehicle to evaluate the damages incurred on the car and prepare the job sheet to kickstart the repair work.

#5 After the successful completion of the repair work, the car insurance company will pay the bill amount directly to the partner garage.

#6 the policyholder is required to pay only for file charges, depreciation of replaced parts, fluids and deductible.

What is Deductible?

Deductible is a fixed amount set by the Insurance Regulatory and Development Authority of India (IRDAI) based on the engine capacity of a vehicle. For a vehicle below 1500 cc engine, it is ₹ 1,000 and for engines above 1500 cc capacity, it is ₹ 2,000.

What is Depreciation?

Depreciation is the reduction in the value of cars happening over the years caused due to regular wear and tear. High depreciation parts include battery, rubber parts and tyres among others which can face a depreciation of up to 50%. Fiber glass parts may face a depreciation of up to 30%. Metallic parts depreciate slowly and their depreciation rate may hover anywhere between 0% to 50% depending upon the age and condition of the vehicle.

Cashless car insurance can for sure make your life hassle-free in the event of an accident.

Great! Next, complete checkout for full access to CarInfo.
Welcome back! You've successfully signed in.
You've successfully subscribed to CarInfo.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info has been updated.
Your billing was not updated.