Traditional bike insurance in India is based on the structure of reimbursement claims. Under such an arrangement, the immediate expenses related to vehicle damage repair or replacement are paid out of pocket, which the insured can claim under the policy coverage.
Generally, the insurance arrangements offered by many general insurance companies in India are great for many people, but bike owners can also purchase policies that make claims completely cashless. A cashless two wheeler insurance policy certainly takes centre stage at a time when a fast-moving lifestyle requires immediate assistance as well.
In this article, let’s take a look at what cashless bike coverage brings to the table for bike owners, how claim works in this arrangement and how it can be made on the go for immediate assistance under the coverage.
Meaning of a Cashless Bike Insurance Policy
Cashless bike insurance is certainly a step up from the traditional method of claim reimbursement for bike insurance in India. The meaning of cashless bike insurance simply implies an insurance arrangement involving zero cash transactions.
In such policy types, the claim settlement is arranged with the partner network of the insurance provider. Network garages, spare component sellers, and any third party providing coverage services are included in this network.
So, if you buy two wheeler insurance with complete cashless claims, the arrangement implies that any bike repair or replacement under the coverage can be made at a respective network partner of the insurance provider. You do not need to make any payments to such a garage or seller and simply need to provide your insurance details to avail of the claim benefits.
Cashless two wheeler bike insurance policies in India are also available in primarily two types, which are -
- Comprehensive covers: These two wheeler insurance policy types include cashless claims related to own bike damage as well as third party liability creation comprehensively.
- Third party liability covers: Under a third party cover, these policy types provide cashless claims in case the damage has been claimed from a third party where the insured vehicle is involved.
How Does Cashless Bike Insurance Work - An Overall Picture
If you buy bike insurance online with the cashless claim facility, it eases the entire procedure to a great extent. Once you have availed of the policy and the insured bike sustains damage, you need to go to the network garage or servicing centre to avail the claim instead of the insurer.
In essence, the bill generated out of claim servicing or repair is sent to the insurer providing the two wheeler insurance policy. The insurer approves and pays for the bill to the partner garage, enabling the insured to be involved just in receiving bike repair or replacement.
Some top benefits of a cashless two wheeler bike insurance policy are:
- Hassle-free claim settlement without any out-of-pocket expenses
- Quick claim processing
- Zero documents involved
- Elimination of unnecessary claim processes
- Time-sensitive claim processing
Cashless Bike Insurance vs Reimbursement Insurance - Critical Differences
A cashless two wheeler bike insurance policy in India typically has a different arrangement than a reimbursement bike cover. For example:
- Bill payment: In cashless policies, the insurer settles the bill directly with the network garage. Under reimbursement policies, the insured bike owner has to pay the bill first and claim the expenses from the insurer.
- Documentation: For cashless policies, the claim process is paperless, while submission of detailed documents, including bills, is required under reimbursement policies.
- Time taken: While claims under reimbursement policies can take a week or more to settlement, it is instant in the case of cashless policies.
- Quick solutions for minor damages: Even minor damages require elaborate inspection when making a claim under reimbursement plans. These damages are, however, settled immediately under cashless policies.
A cashless two wheeler bike insurance policy allows multiple claims in a year or during the policy term without any limitation. Quick and easy, cashless claim settlement also motivates policyholders to avail the claims. However, small claims still affect your claim history and can keep you off benefits like NCB. It is thus advisable to go for a claim under these policies only if it exceeds your financial capacity.
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