Cashless Motor Insurance Policy- Myths VS Facts

As cashless vehicle insurance grows in popularity, certain myths have mushroomed around it. Therefore, it’s crucial to know the facts related to cashless vehicle insurance and separate them from the myths.

A significant benefit of comprehensive cashless vehicle insurance is the policyholder doesn’t have to arrange the entire cash if the insured vehicle is damaged. Instead, you just take your insured vehicle to your insurer’s network garage after an accident. The working of cashless motor insurance and the claim settlement process is mentioned in the next sections. 

However, like any other popular product, various myths around cashless vehicle insurance have popped up. The proper awareness of the facts is the only way to recognise these myths and debunk them. So, let’s begin with understanding cashless motor insurance and then busting certain myths surrounding it.

What Is a Cashless Motor Insurance?

A cashless motor insurance policy is a type of vehicle insurance that enables policyholders to get their vehicle repaired at any of the enlisted garages of the insurer without paying cash. The enlisted garage sends the invoice for the repair to the motor insurance provider. The insurer then makes the reimbursement as per the policy terms and conditions. 

Steps to Claim Cashless Vehicle Insurance

1. Intimate your insurer the type and extent of damage caused to the insured vehicle for which you want insurance reimbursement. You can inform the insurer by calling the designated number or submitting a motor insurance claim online.
2. The insurer will send a surveyor to inspect the vehicle.
3. Provide a copy of the vehicle insurance policy, vehicle registration certificate, or any other relevant document.
4. Your insurer will intimate the workshop with the sanctioned claim amount.
5. Pay the deductible amount as per the policy rules.
6. Accept the delivery of your vehicle after checking the repair work. 

Common Myths Associated With Cashless Car Insurance and the Corresponding Actual Facts

Myth 1:  You can buy cashless vehicle insurance only from your authorised car dealer.

Fact: 

You can purchase cashless vehicle insurance from anywhere. So, you’re free to choose any suitable insurance provider based on your research. 

Myth 2: Every vehicle insurance today is cashless

Fact:

Indeed, cashless vehicle insurance has become immensely popular, and most insurers offer this facility. However, this doesn’t mean vehicle insurance automatically comes with a cashless settlement. So, visit your insurer’s official website and confirm that they provide cashless vehicle insurance.

Myth 3: Cashless motor insurance means the policyholder doesn’t have to pay anything.

Fact

According to the IRDAI guidelines, the policyholder has to bear the compulsory deductibles, which is a certain part of the claim amount, during the claim settlement. The amount can be higher if you have opted for voluntary deductibles. Similarly, the insurer will also consider the vehicle’s depreciation unless you have an add-on depreciation cover.

Once the policyholder pays the amount related to depreciation and deductibles, the insurer pays the remaining amount directly to the network garage. 

Myth 4: You should take the vehicle to the network garage run by your car dealer for quicker claim settlement.

Fact

You can take your vehicle to any network garages authorised by your insurer. The claim settlement can be quick at any of these network garages, provided that-

• You informed your insurer about the damages without delay.
• Your documents are in order.
• Your claim is legitimate.

Most importantly, consider the reputation of the insurance provider before choosing cashless vehicle insurance and the number of network garages it has near your residence or the driving route you are likely to follow. Finally, purchase the right cashless motor insurance and enjoy your ride by driving safely.