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Significance of Cashless Facility in Car Insurance Policy



The cashless facility in a car insurance policy provides the insured access to garages without the need to pay cash upfront for any damages covered by insurance. The cashless facility is the distinct facility where the insurer of the car settles any outstanding claims on the owner's behalf without the owner shelling out a single coin. There is an approved list of garages from where you can get the repairs of your car done to avail of the cashless facility. However, there are meager expenses to be borne by the customer in the form of deductibles or excesses to discourage reckless and hazardous driving. 


Cashless Advantage


The primary and most obvious advantage in the cashless facility is that it is cashless. Nobody goes prepared financially and mentally for an accident when they leave for the destination. The cost incurred in an accident is unforeseen, unpredictable, and colossal. You don’t expect someone to have that much cash available, and the problems multiply if the accident occurs at a place distant from home. In such cases, a cashless facility is of immense importance where you can get your car repaired and up and running without having the necessary cash. All the steps needed can be undertaken at the convenience of your mobile phone, and the documents required are always handy in your car and wallet.




Wide Network of Garages


The cashless facility in the car insurance policy gives you uninhibited access to a vast network of authorized cashless garages like Bharti AXA, which provides you access to 4500+ accredited cashless garages. Car insurance companies have a massive network of affiliated and accredited garages; you can rest assured in case of any unfortunate event like an accident, no matter what part, nook, or corner of the country you're in, an authorized cashless garage is just nearby. In the case, where the authorized garages is inaccessible or out of reach, you don’t need to panic; you can entrust the car to any garage and follow the standard reimbursement procedure: Get your vehicle repaired, demand a service bill, furnish the service bill to the car insurance company and the company will reimburse the funds for the damages covered under the policy



Hassle-free process 


In the past, in case of an accident, a policyholder must pay the cost of repairs and the cost of treatment of injuries, collect the bills, furnish the necessary documentation, raise a claim with the insurance company and then painstakingly wait for the reimbursement. The cashless facility bid adieu to this redundant and debilitating process. Now, the process is the bare minimum, and simple and straightforward that does away with long, serpentine queues and endless waiting for not only processing of claims but also reimbursement of funds. Now you register a claim, submit the claim form with the necessary documents, an appointed surveyor inspects the car, and your claim is processed. Typically within a span of 24 hours, your claim would be processed and the repairs of your car would be already underway. And anytime you face difficulties in the process, car insurance companies provide customer support via phone or mail 24X7.


Open and Transparent Procedure


Gone are the days when you must haggle incessantly and negotiate endlessly without any assurance of arriving at a good deal. Gone are the days when you were compelled or deceived to pay more through unscrupulous trickery and manipulated lies conjured by car mechanics. Gone are the days when you received less what you bargained for and remain oblivious to this fraudulence. Now, this tiresome responsibility of providing the best deal for your car is shouldered by car insurance companies, pay a pre-determined deductible and hand over the car keys to the car insurance company, and rest assured that you'll be provided the best-in-class service and quality. 


Minimal and Standard Documentation


You need not have an iota of worry about the documents to be furnished to process the claim. The documents are minimal and straightforward. In case of damage up to a limit, e.g., 1 lakh in Bharti AXA, all you need to provide are a self-attested registration certificate and driving license, which are always handy in a car. For loss or damage beyond the prescribed limit, you need to provide additional standard KYC documents that are available with you from a vast array of options. The KYC documents can be broadly classified as proof of identification, proof of age, and proof of residency. These are the documents required to buy a SIM card, open a bank account; hence these documents are standard, common, and available with anyone.


Modest and Flexible Deductibles

Cashless facility in car insurance policy is not 100% cashless. The insured is liable to pay a fixed amount, while registering a claim, based on the type of vehicle and its engine capacity, termed as compulsory deductibles set by the Insurance Regulatory and Development Authority Of India. The current rates for private cars are Up to 1500 CC – Rs 1000 and above 1500 CC – Rs 2000. Compared to the humongous cost incurred in the event of an accident, these rates are very nominal and little. However, in case you feel over-burdened by the hefty premium in the cashless facility, you can opt for a voluntary deductible, which is an optional amount chosen by the insured at the time of policy purchase. Higher the voluntary deductible, lower the premium. Hence, if you’re confident of keeping the car safe and sound based on the rigid compliance to traffic laws in your area, excellent condition of roads, and confidence in your driving skills, it is logical to opt for a high voluntary deductible value and save on premiums.


Hence, the cashless facility in car insurance policy is nothing less than a revolution in car insurance. And with every passing moment, its relevance, importance, and popularity are multiplying manifold.


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Disclaimer :The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Insurance needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice for Travel/Health/Motor. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.

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