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How to Recognize If Bike Insurance is Cashless or Not?

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Published on July 03, 2023. EST READ TIME: 3 minutes

Purchasing motor insurance is mandatory as per the Motors Act, of 1961. Once you have planned to purchase bike insurance , you may wonder if the plan offers cashless services or not. Since today's world is a fast-paced one, and rarely people have the time to go through the time-taking reimbursement claims. Undoubtedly, insurance companies like HDFC ERGO have pushed services to a great extent to ensure quick claim settlements, cashless claims remain the most sought-after choice. However, recognising if your chosen bike insurance offers cashless two wheeler insurance or not is quintessential. In this article, you will get to know how you can know the details of a cashless bike insurance plan.

Difference Between Cashless and Reimbursement/Non-cashless Bike Insurance

In order to pick the best bike insurance plan, you first need to analyse and compare bike insurance claim requirements. If cashless is your choice, here is how you can differentiate between a reimbursement and cashless two wheeler insurance:

Particulars	Cashless two wheeler insurance	Reimbursement two wheeler insurance
Definition	A bike insurance claim where the insurer directly settles the bill with the garage. The policyholder only has to pay admissible bills, if any.	A bike insurance claim where the policyholder has to pay the entire bill amount to the garage. Later on, the policyholder can raise a reimbursement claim to the insurer
Process	It is typically a paperless process	It requires the policyholder to submit bills and complete formalities
Time taken	The claim is settled very quickly since the insurer settles bills directly with the garage	The claim settlement takes longer time compared to cashless claims since paperwork and bill submission are required
Garages included	Cashless claims can be raised only at one of the network garages of HDFC ERGO.	Reimbursement claims can be raised at any garage and not necessarily in network garages.

How Does Cashless Bike Insurance Work?

Cashless claims are a feature that you can enjoy when you have comprehensive bike insurance or a standalone own damage cover. Cashless two wheeler insurance does not require much engagement from the policyholder. To find out if your chosen plan is cashless, check out the claim process. Here are the steps involved in the cashless two wheeler claim settlement:

1. The bike owner purchases a cashless two wheeler insurance

2. In case the vehicle suffers damages due to an accident or covered mishaps, the process of raising a claim begins

3. The policyholder needs to inform the insurance company about the incident

4. In case of a road accident, one has to report an FIR as well and get a copy of the same

5. The insured vehicle has to be taken to a nearby network garage

6. Once the vehicle reaches a network garage, the garage employee will evaluate and verify the damages, and the repairing process begins

7. After repairing is done, the insurer pays bills directly to the garage owner

8. The policyholder/bike owner only has to pay deductibles and the depreciation cost. If you have zero depreciation cover, then the depreciation cost is waived.

Benefits of Cashless Bike Insurance

You may have clearly spotted that the very basic benefit of purchasing a cashless two wheeler insurance plan is the hassle-free and less time-taking process. Here are some of the benefits of cashless two wheeler insurance:

1. A hassle-free claim process

A cashless claim requires the least time and effort. You need not submit bills and paperwork to get your claim settled. You can easily raise a claim online or offline, at your convenience.

2. Insurer settles bills

One of the best parts of cashless two wheeler insurance is you need not make payments from your end. This is because the insurer pays bills directly to the garage without your involvement. As a policyholder, you only have to pay deductibles and depreciation costs (if applicable).

3. Better repairing facilities

Under reimbursement claims, one has to first pay from their end and then raise a reimbursement claim later on. It may compel policyholders sometimes to compromise on the services and get local/duplicate bike parts for replacement. However, this is not the case with a cashless claim. Because the policyholder does not have to pay from their end, they are able to avail best of services.

4. Easy access to network garages

You may wonder that since Cashless services are only available at network garages, you may not always be able to reach a network garage. Although there are chances that sometimes you may not find one in your vicinity, owing to the fact that HDFC ERGO has a PAN-India network of over 6700 garages, it is very easy to spot one near you.

Do You Need Any Documents for the Cashless Bike Insurance Claim?

Usually, there is no requirement to submit any documents while raising a cashless two wheeler insurance claim. However, in some situations, you may be asked to upload a few documents, like:

1. Registration Certificate (RC) of the vehicle,

2. Driving license,

3. Motor insurance policy documents,

4. FIR (in case of a road accident),

5. Videos and images of the bike with damages, and

6. Original bills of the garage.

Conclusion

Bike insurance ensures the safety of your finances in case of any mishap to your bike. Since the repair costs and the price of some of the bike parts are quite high, bike insurance helps you cope with such expenses. If you are someone who wants a hassle-free, and quick bike insurance claim settlement, cashless two wheeler insurance is probably the right deal for you.

Disclaimer : The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales

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