Cashless Facility in Online Two-Wheeler Insurance Policy – Need of the hour

Auto insurance has shrugged off its traditional mindset and entered the online world. The two-wheeler insurance industry has become more user-friendly. Now, insurers converse in a language that is easily understandable by potential policyholders.

Online two wheeler insurance has made the entire insurance experience hassle-free. A salesman behind a desk or an insurance agent is no longer the only touchpoint for a policyholder, the insurance company’s website has taken over that responsibility. From buying a policy to settling claims, everything can be performed with just a few clicks.

Cashless Facility in Online Two-Wheeler Insurance Policy – Need of the hour

The e-commerce industry has taught people to purchase products and services online without worrying about security issues. The process related to buying a two-wheeler insurance policy through a website is also similar. However, what the policy issuers and the policyholders need is a smooth claim settlement process resulting in complete customer satisfaction. Unlike the policy purchase process or the process to renew two wheeler insurance, which is similar to popular e-commerce websites, the policyholders are not used to the claim settlement process, thus it needs to be more streamlined. This is where the cashless facility in online two-wheeler insurance becomes a necessity.

What is Cashless Facility?

Cashless facility ensures that the policyholder doesn’t need to pay money from their pocket (apart from deductibles) while settling claims. The entire process is handled by the insurance company. The insurance company has a network of garages with whom they coordinate regarding operational and financial tasks arising during the claim settlement process.

How does the Cashless Facility work?

Insurance companies have tie-ups with garages to repair vehicles. This way, the expenses incurred by the garage for repairing the damaged vehicle are settled between the insurance company and the garage. The bike owner does not need to get involved in the process. There’s no need to pay money upfront to the garage, as the garage gets its money from the insurance company. The entire co-ordination aspect is also handled by the insurance company’s claims team.

In the absence of a cashless facility, the bike owner has to take the responsibility of paying the garage for the repairs and getting the amount reimbursed from the insurance company. This makes it cumbersome for the policyholder to co-ordinate and get the claim settled. Delays from the garage’s side need to be explained to the insurance company as they might have a deadline to close existing claims. All this can be troublesome.

Mentioned below is a standard process to raise a cashless claim for a comprehensive two-wheeler insurance policy.

  • Contact your insurance company after an accident. Example – if your bike went off balance and you accidentally rammed it into a tree causing damage to the bike’s exterior.
  • If your bike is in working condition, they will ask you to get it to a garage which is a part of their network. If it is not in a working condition, then they might arrange for a towing van.
  • A surveyor will be assigned who will inspect the bike, assess the damage, and discuss with the mechanic at the garage about the estimated repair cost.
  • You can have a look at the assessment made by the surveyor and discuss if anything else needs to be included. Once you and the assessor are on the same page, the necessary parts of the bike shall be ordered and the mechanic will start working on the repairs.
  • Once the repairs are done, the garage will raise an invoice against the insurance company and they will settle the claim amongst themselves.

Cashless Hospitalization

Just as insurance companies have a network of garages, they also have a network of hospitals. In the above example, if you were also injured in the accident and raised a claim to cover the cost of treating your injuries, your insurance company will ask you to avail treatment at a network hospital. The insurer and the hospital will settle the hospital bill amongst themselves depending upon the terms and conditions mentioned in your policy.

How to select a Cashless Insurer?

you can simply visit the claims section of an insurer’s website to check if they offer cashless claims. Alternatively, you can also call them and ask your queries regarding cashless claims. For example, Acko General Insurance is a digital-first InsurTech company that offers a cashless and stress-free claims process that doesn’t take you on a ride! All you need to do is give them a call and they will take care of the rest. Even in case of reimbursement claims, they offer instant settlements. You just need to send them a picture of the damaged bike, and after analyzing it, they will credit the claim amount in your account.

Ride Safely

Riding a bike without an active two-wheeler insurance policy is a punishable offense. Make sure to renew two wheeler insurance policy from time-to-time and always wear a helmet while riding your bike.