What is a cashless service in bike insurance policy?

Purchasing a bike insurance policy is necessary to minimize the repair expenses after accidents. Third-party insurance only helps you settle claims raised by a third party. Therefore, getting a full-fledged two-wheeler insurance policy is essential as it covers your losses completely. 

Many insurers offer a cashless service that enables you to get your bikes repaired after accidents without paying any cash. This service is provided in the numerous garages and service centers that have tie-ups with the insurance company. To avail of cashless facility and other insurance benefits without any issues, renew the two-wheeler insurance every year. A hassle-free renewal process like that offered by the Bajaj Allianz bike insurance renewal policy helps you keep the insurance updated. 

Go through the below steps to understand how a cashless settlement works:

Step 1:

Once you purchase bike insurance, you must be aware of the network garages that offer cashless service. These garages might help you with services like towing facility, inspection, accessing damage costs, etc. 

Step 2:

If any accidents or damages occur, launch an FIR at a nearby police station. If required, call the police and report the incident. After that, connect with the insurer and report the damage. 

Step 3:

The insurer sends a representative on the location of the accident. If necessary, they will also tow your bike to the nearest garage that will be one among the garages that are listed in their network. 

Step 4:

The nature of the damage and the expenses needed to repair or restore them are inspected at the garage. The total repair cost is predicted by the network garage. After that, the insurer approves the estimate immediately. The invoice is forwarded to the insurer once your vehicle gets restored completely.

Step 5:

Don’t pay from your end as the insurance company analyzes the bills carefully and clears them. However, a deductible and depreciation amount needs to be paid as per the bike insurance policy rules. After reducing the deductible and depreciation amount from the invoice, the insurance company pays the remaining amount. 

Having a deductible is essential because it helps you to minimize the insurance cost. Also, you can avoid the depreciation amount by availing of the zero depreciation cover. An extra fee above the premium will be charged by the insurer to obtain this cover. A zero depreciation cover is necessary for costly bikes that come with expensive spare parts and accessories. 


Getting a bike insurance plan from an insurance company that offers cashless service is beneficial than regular claim settlements. It is because you will need to pay the repair costs upfront in case of a regular settlement. Once you clear the total repair costs, you can get the invoice from the garage and send it to the insurance company. If you are unable to provide them with a valid invoice, your claim rejection will get rejected. Also, much time is required to settle the claims through reimbursement. Always keep in mind an insurer always have some policies on which they can accept or deny your policy claim.

Before signing the policy papers, ensure whether the insurer offers cashless service or not. Also, make sure to subscribe to a policy that has tie-ups with garages that fall near your home or workplace. Bajaj Allianz is a leading insurer that offers multiple types of bike insurance plans. They have tie-ups with thousands of garages across all the major cities. Therefore, getting a cashless claim settlement would be easier if you subscribe to their bike insurance plans. However, do not forget to get the Bajaj Allianz bike insurance renewal on time as you would not want to claim when your policy has expired. 

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