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Is Cashless Garage Facility So Important While Buying Car Insurance in India?

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The concept of cashless garages in the world of insurance has caught on with cashless health insurance or Mediclaim policies.

It is similar to how you can avail immediate entry into a listed hospital and get started with accessing their medical facilities, especially, in case of emergencies. All you need to pay at this point is the admission fee of the concerned hospital. All remaining medical expenditures until you reach your sum assured on the policy is taken care of by your insurance provider.

This feature has quickly gained in popularity that insurance companies have introduced this amenity for car insurance policyholders too. In fact, some leading players in this segment have already started including cashless garages as a feature in their motor insurance policies.

Why the Sudden Rush to Introduce This Feature to the Car Insurance Market?

It is mandatory under the Indian Motor Vehicles Act of 1988 for all vehicles registered in India to avail of third party insurance that protects the user from the liability of death, bodily injury or damage to property of the third party. However, the facility empowers the policyholder to settle claims in case of any of these unforeseen events without taking out a dime from his or her pocket.

With this facility, the vehicle owner can take the insured car to be any garage that has partnered with the insurance provider for repair works. Moreover, the policyholder will not have to pay anything to the garage as all costs will be settled by the insurance company once the repairs have been completed and the garage raises an invoice to the provider.

There is a catch even when you have this facility in your policy. You can take your vehicle for repairs only to a partner garage and not the garage that is located close to you. Only then can you avail this option.

Do Customers Have to Bear Any Expenses in A Cashless Car Insurance Policy Claim?

Whilst the cashless facility on repairs may be an exciting prospect, you still need to be aware of the possible out-of-pocket expenses that you may be liable to bear.

  • When you choose to avail of the cashless facility, you are liable to bear the cost of depreciation of the damaged parts.
  • Consumables: Parts like nuts and bolts, lubricants, engine oil, etc. are considered as consumables. Replacement of these will incurred as an additional cost that is to be borne by the policyholder. However, it can be waived if there is a consumable cover purchased as part of the car insurance policy.
  • The policyholder will have to pay for all compulsory deductibles as per the policy terms.

How Does the Cashless Facility Work?

As a policyholder, you are aware of the fact that only those service centres or garages that have tie-ups with your insurance provider can offer the cashless facility to you. In order to avail of this, the insurance company will provide you with a list of authorized garages that are part of the network.

You can generally find the list on their official website too or speak to your insurance agent while purchasing your policy. You can also call the company’s Toll-free number to details of cashless garage or service centre located near you.

If your vehicle has suffered damage as a result of an accident, you need to inform your insurance provider immediately. Include a list of repairs that need to be done. Furnish any relevant documents to the garage to proceed with the repairs.

Prior to the approval of the cashless settlement, there will be an inspection conducted by the insurance company. As per the applicable cover, the authorized garage will proceed towards making the repairs in the event of damage incurred as a result of an accident. 

Once completed, the invoice will be raised and sent to the insurance provider along with any other necessary documents by the authorized garage for settlement. The invoice and any submitted documents will be thoroughly assessed by the insurance company. The payment will be released once every detail of the repair made by the garage has been investigated and verified.

Is the Cashless Facility Really Helpful?

Most car owners will agree that the cashless garages option is an immensely useful feature to have in a car insurance policy. However, do remember that insurance companies will only pay for those repairs that are covered under the policy. Additionally, if your car breaks down, it does not fall under the cashless purview. You need to avail roadside assistance which is different from a cashless garage feature

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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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