Difference between cashless and reimbursement two-wheeler insurance
Understanding cashless and reimbursement options
Two-wheeler is one of the most preferred modes of transport many use two-wheeler to commute from one place to another. For driving a two-wheeler in India, it is important and mandatory to have bike insurance.
Having bike insurance in place ensures the safety of the driver and helps cover the costs in case the driver meets with an accident. Most of us buy bike insurance to keep ourselves safe in case of accidental or financial damage to the bike or ourselves. But having bike insurance is not enough one must also understand the two-wheeler claim types offered by your bike insurance policy.
Zurich Kotak General Insurance offers clear claim process insights for bike insurance so that no ambiguity is there in the minds of the policyholder as to how to settle the motorcycle insurance claim. The following article will shed light on the types of two-wheeler claim types and help readers understand the difference between cashless vs. reimbursement claims.
What is a motorcycle insurance settlement?
A motorcycle Insurance settlement or a bike insurance settlement is a process in which the insurer pays or reimburses the claim amount to the policyholder. The amount received by the policyholder can either be in complete or partial depending upon the terms and conditions of the policy and the type of claim.
While purchasing bike insurance the policyholder has to choose either of the two options namely cashless claim or reimbursement claim. Most people do not know the difference between the two and therefore end up opting for the wrong choice. It is important to understand the advantages and disadvantages of both the claim types and then choose the beneficial one. Motorcycle insurance comparison of settlement type will help in understanding the terms of the bike insurance in detail.
Difference between cashless and reimbursement two-wheeler claim types
Cashless claim type as the name suggests is a claim settlement where the policyholder does not have to pay to the service garage as the payment is directly settled. On the other hand, the reimbursement claim type suggests that initially, the policyholder has to pay the expense amount to the service garage and then avail the reimbursement.
Many policyholders prefer a cashless claim settlement option instead of a reimbursement claim as it is quick, efficient, and hassle-free. On the other hand, a reimbursement claim involves paperwork as the policyholder has to submit bills to receive reimbursement of the amount paid by him/her at the service garage.
Difference between cashless vs reimbursement
To understand these insurance concepts let's deep dive and have a look at the following table that showcases the difference between cashless vs. reimbursement
Particulars | Cashless Insurance Claim | Reimbursement Insurance Claim |
Claim Process | The claim process is quick and efficient | The claim process is slow and starts after the policyholder pays the amount to the service garage. |
Paperwork | Little or no documentation is involved under this type of claim | The paperwork involved as the policyholder has to maintain all the bills for further claim processing. |
Claim settlement period | Quick claim settlement as the payment is directly done by the insurer to the service garage | The claim settlement period can be 5 to 7 days after receiving all the bills. |
Deductibles | A partial deductible is charged based on the terms of the bike insurance policy | Complete payment of the deductible is to be done and all bills related to the same have to be submitted by the policyholder. |
Thus, above is the difference between two-wheeler insurance cashless vs. reimbursement claims work.
source: https://quickinsure.co.in/articles/difference-between-cashless-and-non-cashless-bike-insurance-claim
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