Cashless Two Wheeler Insurance

Cashless claim in bike insurance is a service designed to get the policyholder’s bike repaired without making him or her pay anything. Under this concept, two wheeler insurance companies are liable to bear the expenses of bike or any two-wheeler repair on behalf of policyholders. This facility saves you from paying the repair expense of your bike just after the accident.

The cashless bike insurance claim process requires lesser documentation to submit and fewer formalities to go through when compared to the reimbursement claim process. Under this facility, the insurer immediately sends a surveyor to the spot or garage after the mishap to assess the damage extent based on which the insurer settles the claim that brings pace and transparency in the process. Also, the insurers attain quality garages in their network to offer cashless claims which give you the best repair service free of cost.

There are several general insurance companies in India that offer reliable two wheeler insurance plans. In order to provide cashless services to the policyholder, these insurance companies have tie-ups with numerous garages for their convenience. In these partner garages, the policyholders can avail cashless services. this means, that they are not required to pay anything at the garage, but the insurance company will settle the repair bill directly. So, when buying bike insurance plans, it is important to check the list of cashless garages that the insurance company has tie-up with. The greater the number of network garages, the better it is.

Advantages of Cashless Bike Insurance

When you get your bike repaired at a cashless garage, you enjoy the following benefits:

1. Hassle-Free Process

If you avail services at a cashless garage, then the insurance company handles everything by itself. This makes the process hassle-free for you.

2. Speedy Services

You can enjoy speedy services when availing cashless services at the network garage. This is because these garages give priority to the insured individuals thereby keeping them at ease.

3. Smooth Claim Settlement

Cashless garages offer a quick and smooth claim settlement process, which otherwise may take quite a few days.

4. Reliable Garages

Insurance companies are persistently on the watch out for the up-gradation of their cashless garage empanelled list in order to make it more inclusive. The empanelled garages are specifically presented with a proven track record of customer satisfaction and up to date services. Also, these networked garages are reliable, offer genuine spare parts and charge tariff according to industry standards.

5. Peace of Mind

The unexpected accident or mishap leaves you affected not just mentally and physically but also financially. However, opting for a cashless facility reduces the need to arrange for cash on an urgent basis and also ensures a smoothly running claims process, starting from surveying the damage to the point of claim settlement.

Given below are steps to follow at the time of cashless bike insurance claim settlement:

Step 1: In case of third-party damage, register an FIR at the nearest police station from the place of the accident. Also, remember to take a copy of the FIR.

Step 2: Contact and inform your insurance company either online or offline, whichever is possible sooner. The insurance company will send a surveyor and notify you regarding the nearest cashless garages according to its partner garages list.

Step 3: After shortlisting a garage, contact them to get your bike repaired. Also, it is recommended that you should select a garage depending upon the brand/manufacture speciality. Once the bike repair is done, sign the necessary documents and collect your bike.

Step 4: Collect the invoice of the garage and the bill is paid by the insurance company. You are required to pay just for the amount of repair that is beyond your bike insurance coverage.

Documents Needed for Filing A Bike Insurance Claim

According to the different claim categories, a number of documents are required to file for a bike insurance claim. Let us know more about the documents needed.

In Case of Accidental Claim

The list of documents includes:

• Two-wheeler Insurance Copy
• A copy of the tax receipt and registration book
• FIR Copy
• Driving License
• An estimate of total garage repair
• Original payment receipt and repair invoice
• Other documents as asked by the insurance provider

In case of Two-wheeler Theft Claim

The list of documents includes:

• A duly filled claim form
• Registration copy of the two-wheeler
• Policy Document
• Previous insurance information like policy number, insurance provider etc (if necessary)
• Original FIR
• Subrogation Letter
• A copy of the acknowledgment letter to RTO informing regarding the incident.
• NOC
• Claim Discharge Voucher
• Any other document (if the insurance company asks for it)

In Case of any Third Party Claims

The list of documents includes:

• A duly filled claim form
• A copy of FIR
• Police Document
• A copy of driving license
• RC certificate of the vehicle
• For any commercial vehicle, a stamp is needed along with the original documents

Difference Between Cashless Claim and Reimbursement Claim Bike Insurance

Understanding the difference between cashless claims and reimbursement claims in bike insurance is crucial for policyholders. These are the two primary ways of settling insurance claims, each with its own procedures and conveniences. Here’s a detailed comparison:

Cashless Claim

Process:

In a cashless claim, the insurance company directly settles the repair bills with the network garage where the bike is serviced.

The policyholder needs to take the bike to a garage that is part of the insurer’s network.

Payment:

The policyholder does not have to pay upfront for the covered repairs. The insurance company pays the garage directly, except for any deductibles or non-covered charges.

Convenience:

Offers high convenience as the policyholder does not have to arrange for funds for repair.

Documentation:

Requires minimal documentation from the policyholder's side, as most coordination is between the garage and the insurance company.

Availability:

Only available at network garages authorized by the insurance company.

Reimbursement Claim

Process:

In a reimbursement claim, the policyholder first pays for the repairs out of pocket and then submits the bills to the insurance company for reimbursement.

Payment:

The policyholder must bear the repair costs initially and will be reimbursed by the insurance company later, after deducting any applicable charges.

Convenience:

Less convenient compared to cashless claims as it involves upfront payment and a waiting period for reimbursement.

Documentation:

Requires comprehensive documentation, including repair bills, payment receipts, and a properly filled claim form.

Availability:

Can be availed at any garage, irrespective of whether it is part of the insurer’s network or not.

Key Takeaway

• Cashless Claims are about convenience and avoiding out-of-pocket expenses at the moment. They are ideal if you have access to a network garage and want a hassle-free process.
• Reimbursement Claims offer flexibility in terms of choosing a repair service provider but require you to have the funds for immediate payment.

Choosing between cashless and reimbursement claims depends on your immediate financial ability to pay for repairs, proximity to network garages, and personal preference for convenience.

Reasons Why Cashless Claim is Better When Compared to Reimbursement Claim

Cashless claims have become increasingly popular in bike insurance due to the convenience and ease they offer. Here are some key reasons why a cashless claim might be a better option compared to a reimbursement claim:

Immediate Financial Relief:

In a cashless claim, you don't need to pay upfront for the repairs. The insurance company settles the bill directly with the garage. This arrangement is especially beneficial if you're not prepared for immediate, large expenses.

Hassle-Free Process:

Cashless claims typically involve less paperwork and documentation from your side. The majority of the administrative and claim-processing tasks are handled between the insurer and the garage.

Quality Service Assurance:

Garages in the insurer's network are generally reputed and pre-approved for quality service. This gives you an assurance of standard repair work.

No Need for Funds Arrangement:

Since the insurer settles the bill directly with the garage, you’re saved from the process of arranging funds for repairs and then waiting for reimbursement.

Simplified Claim Settlement:

The process of claim settlement in cashless claims is usually faster and more streamlined as it involves standardized procedures agreed upon by the insurer and network garages.

Reduced Out-of-Pocket Expenses:

Apart from the compulsory deductible or non-admissible expenses, you don't incur any significant out-of-pocket expenses in cashless claims.

Transparency in Billing:

As the insurer directly deals with the garage, there is usually more transparency in billing and less chance of inflated repair costs.

Less Documentation for Policyholders:

You don’t need to collect and submit multiple bills and receipts. Basic documentation like the claim form and FIR (if applicable) is generally sufficient.

No Waiting Period for Reimbursement:

You avoid the waiting period associated with reimbursement claims, where you first pay from your pocket and then wait for the insurer to reimburse the amount.

Peace of Mind:

Overall, cashless claims offer greater peace of mind during stressful times like post-accident repairs, as most of the process is taken care of by the insurer.

While cashless claims offer numerous advantages, it’s important to remember that they are restricted to network garages. Hence, if you have a preferred garage that is not part of the insurer’s network, a reimbursement claim might be the only option.

Reasons Why Your Claims May Get Rejected

Understanding the common reasons for claim rejection in bike insurance is crucial for policyholders. It helps in ensuring that you comply with the policy terms and avoid any practices that could lead to a claim being denied. Here are key reasons why bike insurance claims may get rejected:

Driving Without a Valid License:

If the rider involved in the accident does not have a valid driving license, the insurance claim is likely to be rejected.

Influence of Intoxicants:

Claims are generally rejected if it is proven that the rider was under the influence of alcohol or drugs at the time of the accident.

Delay in Intimating the Insurer:

Failing to inform your insurance company about the accident within the stipulated time frame can result in claim rejection.

Policy Expiry:

Driving with an expired insurance policy nullifies the coverage. Any claim made during this period will be rejected.

Not Using the Bike as Per the Defined Purpose:

Using the bike for purposes other than what it’s insured for, like using a personal bike for commercial purposes, can lead to claim rejection.

Non-Disclosure or Misrepresentation:

Providing false information or withholding important information at the time of policy purchase can lead to claim denial.

Unapproved Modifications:

Making significant modifications to the bike without informing the insurer can result in claim rejection, especially if the modifications affect the performance or safety of the vehicle.

Non-Compliance with Policy Terms:

Violating any terms and conditions of the insurance policy can result in claim rejection. This includes not adhering to maintenance requirements or safety guidelines.

Fraudulent Claims:

If a claim is found to be fraudulent or involves any form of deception, it will be rejected.

Lack of Proper Documentation:

Not providing the necessary documents such as the FIR, claim form, original bills, and receipts can lead to claim rejection.

Understanding these reasons can help ensure that you adhere to the terms of your policy and take the necessary steps to avoid claim rejection. Always read the policy document carefully to understand your coverage and the insurer’s terms and conditions.