Cashless Claims vs Reimbursement Claims – Car Insurance

Having car insurance is a requirement by the law under the Motor Vehicle Act, 1988. It has been mandated to protect against accidents, theft, or damage which is normally unexpected and often involves more than one party. it is done so people who are caught in an accident will not blame the other party or suffer huge losses as a result. 

But the insurance policies do come with their own set of rules and caveats.  Most of us try to learn as much about our insurance policy such as the coverage, premium, applicability, etc but fail to look for the most important factor of them all – the claim settlement procedure.

Depending on the type of policy you chose, your claim settlement procedure could either be trouble-free or rife with hassle at every step. In today’s feature, we’ll discuss the two methods of claim settlements- the new and easy cashless mode and the traditional reimbursement claim.  

Reimbursement Claims 

Conventional reimbursement claims require an individual to pay all the expenses in the period involving the repair work which is only later reimbursed to the insured when the claim is approved. This sort of claim settlement places all the responsibility on the insured, from arranging payments, filing claims, to liaising with the workshop and getting approvals. 

Features Of Reimbursement Claims

• Payment initially is made by the insured themselves. 

• Insured has to deal with the workshop 

• Costs involved need to be arranged by the insured in the given time period.

• Reimbursement will take time to be processed 

• More paperwork than cashless claims  

Process Of Reimbursement Claims 

For getting a reimbursement claim, firstly the insured needs to inform the insurance company through mail or post, 24-48 (depending on the insurance company) hours prior to sending the car for repair. The claim will be assessed for authenticity and payments to the insured will only be made after the claim has been approved.  

Cashless Claims 

Cashless claim is a method of settlement that is most convenient to the insured. In this way of reimbursement, the insured need to not pay anything from their side, outside a nominal file charge. The responsibility of paying the garage lies with the insurance company which needs to be impaneled with the same. 

Features Of Cashless Insurance Claims 

• No payment from the insured’s side

• Insurer deals directly with the garage

• No need to arrange funds on a short notice

• No waiting period of reimbursement 

• No huge paperwork. An overall convenient procedure. 

Process of Cashless Claims 

In order to avail the facility of a cashless claim with the insurance provider, the insured need to file a claim through an empanelled car service station or a network of such. Once the claim has been raised, the insurance company will send one of their surveyors agents to assess the damages on the vehicle and ascertain the authenticity of the claim made. Then, after the surveyor rules the claim to be true and genuine and the claim amount is within the IDV of the insured property, the claim will be approved.  Here, the insurance company will pay the entire sum of repair cost on the vehicle to the said garage without any involvement of the insured. 

Which Is Better?

Under any type of insurance, generally speaking, a cashless claim is much better and preferred mode of settlement by consumers. Simply delegating the responsibility to the insurance company for taking the hassles on is far more convenient than having to pay it from your own side, which especially becomes a fuss when you are in the throes of a crisis situation. 

Where a reimbursement claim lays all the burden of paying out in tandem with the endless paperwork that needs to be filled to get the approval and compensation, cashless claim really works best in a situation of emergency as it does not bring any hassle. 

Choosing VehicleCare For Your Cashless Claims 

For your cashless procedure to go smoothly without any hiccups, there are various aspects of your insurance policy that need to be kept in mind. You may not find the same level of convenience or coverage on claim amount, if you fail to choose your car repair partner wisely. 

With a Pan India network of well-equipped and reliable garages, VehicleCare ensures smoother procedure and better claim settlements for your cashless claims. You can find your perfect car repair partner in VehicleCare as a recognized name among major insurance providers that assures both quality and trust.