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What is Cashless Benefit in a Motor Insurance?

By Finserv MARKETS - Feb 4,2019
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What is cashless motor insurance?

We all have heard about cashless benefit during hospitalization. If our health insurance company has a tie-up with the hospital, we do not need to pay for the treatment charges upfront. It is quite beneficial in times of medical emergencies for which we may not be prepared. This concept gained immense popularity and success. Gradually, other types of insurance also introduced this concept and as a result, we now have a cashless motor insurance as well. This implies that if your auto Insurance provider has collaboration with a car servicing center, you do not need to pay for the repair and maintenance upfront. There are many aspects of cashless auto insurance and it has struck a chord with the consumers.

How does a cashless benefit work in a motor insurance?

Availing the cashless benefit in motor insurance is a hassle-free and convenient way to get your vehicle repaired without spending a single penny. If your motor insurance policy provides a cashless benefit, then you can approach a garage which has a tie-up with the auto insurance provider and get your vehicle repaired. You can check the details of the network garages while buying a motor insurance online. The servicing of the vehicle and its complete maintenance will not cost you any extra cash. The bill for the repairs will be directly sent by the garage to the insurance provider who will make the payment for it in accordance with the terms of the policy. The entire process is simple but make sure you follow the below-mentioned steps to benefit from the same.

  • If your vehicle meets with an accident and is damaged, you first need to inform your insurance service provider about all the happenings in detail.
  • You would then need to visit the impaneled garage with your damaged vehicle and get it inspected.

Most of the auto insurance companies in India have collaboration with garages in different locations. Once your damaged vehicle is inspected by the engineers at the garage, they get in touch with the insurance provider and give them repair estimate. They will then make the repairs according to the coverage provided to you under the policy.

The key benefit of having a cashless claim facility is that the insured gets relief from stress in a situation of emergency. The insurer directly pays the expenses to the garage within its network. Besides the essential deductibles, the insured remains stress-free regarding the settlement of expenses for the car damage. It may not be possible to have sufficient cash in hand all the time. So, a cashless claim facility becomes a boon for vehicle insurance policyholders. Also, the free pick-up, towing and car wash facilities can prove very useful in remote areas.

A cashless auto insurance plan entails various benefits and prevents the financial strain on an individual. In the case of an unforeseen situation where the vehicle is required to be repaired, the policyholder does not have to pay any amount upfront.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522