An important aspect of car insurance is claim settlement. There are two aspects involved in the process,
- Reimbursement claim process
- Cashless claim process
The cashless claim process is more popular among car owners.
Cashless Garage Facility
Cashless garage or network garage is a garage authorised by insurer for repair of a vehicle insured under them. Insurance companies now offer claim settlement in the form of cashless facilities at a garage. If a policyholder chooses Cashless Insurance cover, she can get the vehicle repaired for free at any of the network garages that are included in the company’s list.
How does it work?
- In case of any damage caused to your vehicle, you must immediately inform your insurance company about the same. They would ask details of the damage and areas of the vehicle that are affected.
- You then need to raise a cashless claim request with the customer care team. Also, file an FIR in case of accident or theft and obtain its copy.
- An authorised surveyor will be sent to inspect the vehicle for damages and access the total loss. Once he approves, you can get the address of the nearest cashless garage and get your vehicle towed or driven there.
- These garages have tie-ups with the insurance company and thus the customer is offered extra advantages which are included in the car insurance price. The insurance company settles the bill with the garage once all the damage is repaired.
- The insurance company is bound to pay only for damages that are covered under the policy. Any additional repair cost has to be borne by the car owner.
Benefits of Cashless Garage Facility
- Hassle-free and easy process
- Convenient to the policyholder
- Reduces financial stress of the policyholder in times of crisis
- Assured quality repair work
- Do not have to pay for the repairs
There are certain disadvantages of the cashless garage facility like,
- The insurance company will only cover the expenses of the vehicle repair.
- If the damaged car parts/accessories are not included in the insurance policy, then the policyholder will have to pay for them.
- It would be an inconvenience for the car owner if the network garage is at a farther distance, as these garages are limited to certain specific locations only.
Thus, cashless claim settlement cover is of a huge benefit for the car owners, particularly in times of financial dearth and repair emergency. General insurance companies like Bharti AXA provide best claim settlement at favourable rates.