As per the Motor Vehicles Act, 1988, purchasing third party car insurance is mandatory for every car owner in India. This helps in providing you with the financial support that you might require in case of any damages caused to the third party of their property. Some of you might purchase car insurance without having proper knowledge about it. There are various aspects of car insurance that one needs to understand before buying it. A very convenient concept known as cashless car insurance might still be unknown to many.

Mentioned below are answers to some of the most frequently asked questions about cashless car insurance, for your better understanding of how cashless motor-insurance saves time as well as effort:

1. What is Cashless Car Insurance?

This concept was introduced in the healthcare domain first. Popularity in the idea of cashless insurance was seen. Hence, general insurance providers started to offer it under their motor insurance plans. This facility offers many advantages to you that you can benefit from.

In simple words, it is a facility wherein the car insurance provider has tie-ups with authorized garages, also known as network garages. You can get your vehicle repaired at a network garage if there is any case of an accident. You do not have to pay for the repair work. It is the insurer who will bear the expenses on your behalf.

2. How to avail cashless garage facility?

When you’re buying a comprehensive or third party car insurance policy for your new car, see to it that your insurer offers cashless garage facility. You can avail of this service even if your vehicle is used. When extending this service to used cars, the insurer’s discretion is applicable.

3. What if I am not able to avail the services of a cashless garage?

At times, when the authorized network garages are out of reach and you have to avail the services nearest to you, then in such a situation, you can get your damages fixed as well as get a service bill for it. You will then be reimbursed by the insurer, for damages covered by your policy.

4. In case of damages, do I contribute towards it or will the company pay the entire claim?

You need to pay the deductibles as you’ve agreed in your insurance contract. A deductible is that amount you have to pay from your pocket towards an insurance claim before the insurance company pays the rest.

5. Will the incurred loss be paid entirely by the insurer?

As agreed in the contract, the insurer pays for damages minus the excesses.

6. As part of the claim, what excesses do I have to bear?

The types of excess involve compulsory deductions as you have agreed to in the policy.

7. What if I meet with an accident?

Do not panic if something like this happens. The claim must be reported to the insurance company. You must keep all your insurance documents as well as bills handy so that the insurance company can assist you at the earliest. You can also approach the nearest network garage to avail the services.

8. What exactly does a network garage mean?

A network garage is capable of servicing claims for the customer. The company also authorizes it and you can avail cashless claims.

Having a cashless claim facility is beneficial because the insurer handles the expenses directly, that will help you in releasing stress. This facility will only prove to be a boon to you, as you can’t have cash in hand all the time.