Cashless vs Reimbursement Claims in Motor Insurance
When it comes to claims, customers often get confused between cashless and reimbursement processes. As an insurance professional, explaining the difference clearly helps you manage customer expectations and build trust.
🔎 What is a Cashless Claim?
In a cashless claim, the customer doesn’t need to pay the repair bill (except deductibles). The insurer directly settles the approved amount with the network garage (a garage that has tie-up with the insurer).
✅ Advantages of Cashless Claims
Hassle-free process.
No need to arrange large cash.
Quick settlement between insurer & garage.
Available at wide network of partner garages.
❌ Limitations
Only at network garages.
Non-covered expenses (e.g., consumables without add-on, policy exclusions) must be paid by customer.
📊 Example
Accident repair cost: ₹80,000.
Covered by insurance: ₹75,000.
Deductibles & non-covered: ₹5,000.
Customer pays ₹5,000, insurer pays ₹75,000 directly to garage.
🔎 What is a Reimbursement Claim?
In a reimbursement claim, the customer first pays the entire repair bill and later gets reimbursed by the insurer (after surveyor approval and documentation).
✅ Advantages of Reimbursement Claims
Can repair at any garage of choice (not just network).
Flexibility in choosing parts or repair style.
❌ Limitations
Customer must pay upfront.
Settlement may take more time (survey + verification).
📊 Example
Accident repair cost: ₹80,000 at a non-network garage.
Customer pays ₹80,000 to garage.
Surveyor approves ₹75,000 (after depreciation).
Insurer reimburses ₹75,000, customer bears ₹5,000.
⚖️ Key Differences: Cashless vs Reimbursement
💡 Sales Tips for Agents
Promote Cashless Network Strength – Customers value convenience. Highlight the insurer’s wide network of garages.
Educate on Deductibles – Be clear that some costs (consumables, depreciation if no add-on) must be borne by customer.
Position Reimbursement as Backup – Explain that if they can’t reach a network garage, reimbursement is always an option.
Upsell Add-Ons – Zero Depreciation, Consumables Cover, and Engine Protect minimize out-of-pocket expenses in both claim types.
✅ Conclusion
Both cashless and reimbursement claims ensure customers are protected—only the process differs.
Cashless = Convenience and Speed
Reimbursement = Flexibility
👉 As an agent, your role is to set the right expectations: “With our cashless tie-ups, you don’t need to worry about bills. And if you choose your own garage, reimbursement has you covered too.”
