Cashless Car Insurance

A cashless car insurance policy is a plan feature that allows policyholders to get their vehicle repaired without paying out of pocket. It means that when the vehicle needs repairs, policyholders can take it to any authorised network garage of the insurance provider and have it repaired without paying out of pocket.

The network garage is the car garage which has a tie-up with the insurance company. Insurance providers generally have a wide network of garages spread across the country. Once the repair on the damaged vehicle is completed, the insurance provider will settle the bills directly with the garage owner.

Also Read: 5 Types of Car Insurance Coverage Explained

A cashless car insurance claim allows policyholders to save their hard-earned money on expensive repairs. Here are some of the benefits of using a cashless car insurance policy.

Fast Claim Settlement

One of the benefits of choosing a cashless insurance for a car is fast claim settlement. When policyholders take their vehicle to a network garage, they do not have to go through the lengthy claim process. With the cashless car insurance feature, policyholders can file claims hassle-free.

High Quality Repair Services

Insurance providers have a tie-up with trusted network garages that meet specific quality standards. This ensures your car is repaired by trained technicians using proper tools and genuine parts. You can rely on consistent service quality, timely updates and professional handling of even major repairs.

Minimal Out-of-Pocket Expense

Since the insurance provider pays the network garage directly, your personal expenses stay low. You only need to cover deductibles or charges not included in the policy. This reduces financial stress during unexpected breakdowns or accidents and makes repairs more affordable.

Minimal Documentation

Cashless car insurance claims require very little paperwork. You usually just provide basic policy details, ID proof, photos of the damage and the claim form. The garage and insurer coordinate most of the process, saving you time and avoiding repeated document submissions.

Also Read: Benefits of Car Insurance

TATA AIG offers a car insurance plan that comes with a cashless garage feature. Our comprehensive car insurance policy allows policyholders to get their vehicle repaired at a network garage without paying any cash.

We have a wide network of 5,900+ car garages all across the country. Our network garage is equipped with experienced technicians who offer top-notch repair services to your vehicle.

The working of a cashless car insurance policy is easy. It involves various steps, such as notifying the representative, taking the vehicle to the network garage, and more. Here is how a cashless car insurance policy works.

Step 1: Report the Incident

To initiate the cashless claim procedure, policyholders must notify their representative of the incident that caused vehicle damage. Ensure you provide all details, including the date, time, and location of the incident.

Step 2: Take Vehicle to Network Garage

After notifying the insurance provider, take the vehicle to any network garage of your choice. Vehicle owners can easily locate the network garage in their area using the network garage locator tool.

Step 3: Provide Policy Documents

After taking the vehicle to a network garage, policyholders need to provide the necessary documents, such as a copy of the car insurance policy, vehicle RC, driving licence, etc., to the garage owner to initiate the cashless claim.

Step 4: Vehicle Inspection and Assessment

Once the claim has been initiated, a survey has been assigned to inspect the vehicle for damage and loss. The surveyor will prepare the vehicle's assessment report.

Step 5: Claim Approval

The representative will review the surveyor’s report, verify the documents and confirm whether the damage is covered under the policy. Once everything is in order, the claim is approved, and the garage receives the go-ahead to start repairs.

Step 6: Repair Services Begin

The network garage begins the repair work in accordance with the approved estimate. Trained technicians use genuine parts and follow the insurer’s guidelines to ensure quality service.

Step 7: Settlement of Bill

When repairs are completed, the insurer directly settles the approved amount with the network garage. You only need to pay deductibles and any charges not covered under your policy.

Step 8: Vehicle Handover

Once the repair is completed, the garage informs you to collect your car. You can inspect the work, make any final payments for deductibles or non-covered items and then take the vehicle home.

Let us understand cashless car insurance with an example. Sumit has purchased a TATA AIG comprehensive car insurance plan for Kia. One evening, his car gets damaged in a minor accident. He informs TATA AIG and takes the vehicle to a nearby network garage. A surveyor inspects the damage and approves the repair estimate.

The garage starts the work, and once the repairs are done, TATA AIG settles the approved amount directly with the workshop. Sumit only pays the deductible or any non-covered charges, making the entire process quick and stress-free.

Whether the damage is major or minor, the cashless feature covers repair expenses. However, certain exclusions are not covered under the cashless car insurance feature of the TATA AIG policy.

Deductibles

Deductibles are the fixed amount you must pay from your own pocket every time you make a claim. They are not optional at the time of a claim because they’re already mentioned in the policy when you buy it. There are generally two types of deductibles in car insurance.

• Compulsory Deductible: This is a mandatory amount set by the insurer in accordance with IRDAI rules. It depends on the vehicle type and engine capacity. Smaller cars usually have lower compulsory deductibles, while bigger or commercial vehicles have higher ones. You must pay this amount for every claim, regardless of your policy.
• Voluntary Deductible: The extra amount you choose to pay when buying the policy. In return, you get a discount on your premium. A higher voluntary deductible means a lower yearly premium, but you’ll also cover a bigger part of the repair cost whenever you file a claim.

Consumables

In most cases, the cost of consumables, such as oil, grease, nuts & bolts, filters, etc., is not covered by the cashless car insurance. However, you can purchase a consumables add-on cover at an additional price to enjoy this extra coverage.

Depreciation

Depreciation refers to the gradual reduction in the value of car parts over time due to age and regular use. When a claim is raised, the insurer deducts depreciation on the parts being replaced, based on their age and type (like plastic, metal, or fibre). This is not an exclusion, but a standard deduction applied during claim settlement.

However, suppose the insured has a zero-depreciation add-on. In that case, the insurer covers the full cost of parts without depreciation, resulting in a higher claim payout and lower out-of-pocket expenses.

Also Read: What is Car Depreciation Rate?

When filing a cashless claim for car insurance, policyholders should keep certain factors in mind to ensure a smooth process.

Notify Representative Timely

If you do want your cashless car insurance claim to be rejected, then you need to notify the TATA AIG representative on time. Timely intimation helps start the claim process quickly and keeps everything smooth.

Find Nearby Network Garage

Another thing policyholders need to pay attention to when filing a cashless car insurance claim is locating a network garage. It is best to choose a network garage near you for easy pickup and drop-off of damaged vehicles.

Gather Required Documentation

When filing a cashless claim, policyholders must also carry all required documents, including the policy schedule. Driving licence, vehicle RC and more. Incomplete documentation can also delay the repair process.

Understand Exclusions and Out-of-Pocket Costs

Every policy has a few exclusions and certain expenses you might need to pay out of pocket. It helps to know which parts, damages or situations aren’t covered, along with deductibles or compulsory charges, so you are not surprised during the claim.

Honesty and Adherence to Law

Always share accurate information about the incident and follow legal guidelines. Providing false details or breaking traffic rules can lead to claim rejection. Staying truthful and compliant ensures a smooth and hassle-free claim process.

Filing a cashless car insurance claim with TATA AIG requires a few steps which policyholders can easily do. Here is how you initiate a cashless claim procedure.

• Step 1: After the incident, notify the TATA AIG representative of the damage by calling the helpline at 022-6489-8282 (charges apply) or by visiting the self-service portal.
• Step 2: Locate the network garage in your area using the online tool. Take your vehicle to the nearest network garage and submit the policy documents.
• Step 3: The surveyor will assess the vehicle for damage and loss and provide a detailed report based on which the cashless claim will be approved or rejected.
• Step 4: Once the claim has been approved, the garage owner will initiate the repair process.
• Step 5: After the repair is complete, TATA AIG will settle all bills directly with the network garage, and you can take your vehicle home.

Also Read: Car Insurance Claims Process

Here is the list of documents policyholders need to provide while filing cashless car insurance claims.

• Original car insurance policy document
• Duly filled and signed cashless claim form
• Copy of vehicle registration certificate
• Copy of driving licence
• Proof of identification
• Proof of address
• Any other additional documents required by the TATA AIG representative.

Also Read: Documents Required to file a Car Insurance Claims

There are various reasons why cashless car insurance policy claims can be rejected, such as incorrect information, discrepancies in details, and more. Here are some pointers to avoid cashless insurance car claims.

• Read the policy document thoroughly to know what is covered and what is not under the car insurance policy.
• Sometimes, cashless claim rejection is due to an expired car insurance policy. It is advisable to renew the policy on time to avoid claim rejection.
• Unreported modifications and changes to vehicles can also lead to claim rejection. That is why it is always advisable to disclose the vehicle modification when buying a plan.
• If the damage or loss to a vehicle is due to unethical activities such as racing or speeding, it can also lead to rejection.

Policyholders can easily find a network garage in their area using the network garage locator tool. Here is how the cashless garage finder works.

• Step 1: Go to the TATA AIG self-service page.
• Step 2: Click on the “Network Garages” option under Motor.
• Step 3: Enter the city and car make, and model number. Then click on the “Search” button.
• Step 4: The network garage in your area will appear on the portal, including the garage name and address.

Buying a car insurance policy with a cashless claim feature with TATA AIG is simple and requires only a few simple steps. Here is how you can buy a car insurance plan.

• Go to the official TATA AIG website, open the Personal section and choose Car Insurance from the motor insurance options.
• Select the “Insure your Brand New Car” option. Enter details like the car’s brand and variant, then click the “Continue” button.
• You will see a list of available plans. Pick the one you prefer and choose the insured declared value, and add-ons.
• Complete the CKYC process and make the premium payment.
• Once the payment goes through, your car insurance policy with a cashless feature will be sent to your registered email.

Understanding the cashless car insurance policy is essential, as it saves vehicle owners from hefty out-of-pocket repair costs. It also allows vehicle owners to get high-quality repair services at the network garage.

However, choosing the best cashless car insurance policy with a wide network of garages is important for vehicle owners to ensure hassle-free claims in the hour of need. TATA AIG offers a customised four-wheeler insurance plan that comes with a cashless garage facility. With over 5900 cashless car garages spread over the country, you do not have to worry about repair expenses.

Furthermore, our car insurance policy offers hassle-free claim services to vehicle owners. With over 750+ claim experts on board, you will get prompt assistance if you find yourself in any trouble while filing a cashless claim. Besides this, we also offer NCB in car insurance, which allows policyholders to avail of up to a 50% discount on the premium at the time of renewal.

In addition, our comprehensive car insurance policy offers unique add-ons such as roadside assistance, vehicle loan protector, zero depreciation, and more, allowing the policyholder to enhance their coverage. Buy a car insurance plan with TATA AIG now and enjoy benefits like cashless repair services in a network garage.