How Does Cashless Garage Work In India?

• Protect yourself with third party or comprehensive cover
• Use bumper to bumper policies to reduce your liability
• Enjoy facilities like zero depreciation and roadside assistance covers

As per the Motor Vehicles Act of India, it is mandatory for every vehicle plying on the roads to be insured with at least a third-party liability cover. Having a car insurer protects the insurer against unforeseen liabilities arising as a result of mishap.

Now, claim settlement is an important aspect of the car insurance and the process can be broadly classified into two; reimbursement claim process and cashless claim process, out of which cashless claim process is more popular among the car owners.

Network Garages

Cashless garage or network garage is a garage authorised by the insurer for the repair of a vehicle insured under them. Usually the insurers will have tie-ups with a number of garages which could fix any insured car post a mishap, provided that the insured has availed the cashless garage facility at the time of policy purchase or renewal. Once the car is repaired by a cashless garage, the insurer pays the garage for the repairs made. Here, the insured is benefited as he/she will not have to pay for the repairs at all except for the value of vehicle’s depreciation at the time and the deductibles.

Cashless Settlement Process

Cashless claim settlement includes the following steps:

• Inform the insurer as soon as the mishap takes place via its customer care team
• Raise a cashless claim request with the customer care team
• File an FIR at the nearest police station in case of an accident or theft and obtain a copy of the same
• The insurer will send an authorised surveyor to inspect the vehicle for damages and assess the total loss incurred
• Submit the copies of the requested documents to the surveyor and get them cross-verified with the originals
• Once your documents are in order, the surveyor will approve for your vehicle to be repaired
• Get the address of the nearest cashless workshop from the insurer’s official website or from the customer care team
• Get your vehicle towed or drive your car to the nearest cashless garage and get it repaired
• The insurer, post all the repair work, will pay the garage for the repairs done

Advantages of Cashless Garage

• Hassle-free and easy process
• Reduces the financial stress on the policyholder during a mishap
• Assured quality repair work
• Don’t have to pay for the repairs

Disadvantages:

• The insurer will cover only the expenses for the vehicle repair
• If car parts/accessories that are not included in the insurance policy get damaged, you will have to bear the repair cost for these damaged parts
• Sometimes the presence of cashless garages are limited to specific locations alone