Identifying Whether Bike Insurance Offers Cashless Benefits or Not

Two-wheelers have become increasingly popular among commuters in India. They offer convenience, safety, and easy maintenance at a low price. As per the norms of the Motor Vehicle Act in the country, buying a two-wheeler insurance policy for your bike is mandatory.

Now, a bike insurance policy offered by an insurance company can have many different and distinguishing features. For example, the policy can offer cashless or non-cashless benefits. If you want to purchase a long term two wheeler insurance that offers cashless benefits, you may find this blog helpful. Here you shall learn everything about cashless bike insurance and how you can identify whether an offline or online two-wheeler policy is cashless.

What is Cashless Claim in Bike Insurance

A cashless claim in bike insurance is a facility your insurance provider offers you. Under this facility, you can get your two-wheeler repaired at any of the listed garages without paying any cash. In addition, since you are not expected to be involved in the bike’s inspection, repair works, and underlying costs, it saves you from many hassles.

The insurance company directly pays the cost of the garage repairs and does not dig a hole in your pocket. You can purchase two-wheeler insurance from a reputed insurance provider like Tata AIG with a cashless garages facility .

Note that third-party insurance coverage does not provide cashless benefits. Therefore, opt for a comprehensive two-wheeler insurance policy if you seek a cashless claim facility.

Difference Between Cashless and Non-cashless Bike Insurance

The differences between cashless and non-cashless or reimbursement bike insurance can be understood from the table below:

Factors Cashless Two-wheeler Insurance Non-cashless Two-wheeler Insurance
Claim Settlement Procedure Cashless settlement of repairs and replacements from a listed network garage First, you get the repairs and replacements done from any garage and then file for reimbursement with the insurer
Claim Settlement Method Paperless process that can be done on the insurer’s website or mobile application Documentation and paperwork required for claim settlement
Claim Settlement Speed Instant claim settlement with a listed garage Claim settlement may take time due to lengthy processing
Policyholder’s Liability All bills are settled by the insurer, minus the deductibles You have to pay the complete bill from your pocket and file for reimbursement later

How Does Cashless Two-wheeler Insurance Work

You can take cashless bike insurance online or offline. The insurance company partners with several garages located all over the country for the cashless settlement of a customer’s repair bills. If your bike gets damaged or you meet with an accident, you can get your vehicle repaired at any of the network garages by raising a bike insurance claim with your insurance provider.

The garage sends the bills directly to the insurance company, and the claim is settled between them without your involvement. However, you may have to pay the deductibles, if any.

How to File a Cashless Claim with the Insurance Company

Follow these steps to file a cashless claim with your insurance provider:

  • Step 1: File an FIR or MCR: The first step in case of an accident or theft of a vehicle is to file an FIR (First Information Report) or an MCR (Motor Collision Report). If the accident was minor, an MCR is enough.
  • Step 2: Inform the insurance company: Immediately inform the insurer and provide all the necessary details of the incident. The insurer will inform you about the nearest network garages and send towing assistance if you cannot drive.
  • Step 3: Contact a network garage: Contact a network garage for your bike’s repair. It is advisable to select a nearby garage that offers quality repairs for your bike’s brand.
  • Step 4: Get the repair work done: The network garage will inspect your bike and inform you if any additional expenses are required from your end, which will not be covered under your insurance plan. They will repair your bike once the repair work is approved.
  • Step 5: Bill settlement: After the repair work, the insurer will settle the bill. You may have to pay some deductibles at this point.

Benefits of Cashless Two-wheeler Insurance

There are several benefits of having an insurance plan with a cashless claim feature. They are:

  • No burden on the policyholder: The policyholder is free from the burden of paying the hefty repair bills out of his pocket.
  • Convenience: Cashless bike insurance is popular among bike lovers for its convenience. Locate a network garage and get your bike repaired without worrying about the costs involved. The insurance company and the garage settle the claim between themselves.
  • Best service and original parts: The original bike parts and accessories are usually expensive. Under a cashless insurance claim facility, you need not worry about the cost of the parts and get original parts and quality repair service for your precious bike.


A cashless long-term two-wheeler insurance policy does not burden you with hefty repair and replacement bill payments for your two-wheeler. Get your vehicle repaired at a listed garage without having to pay anything by opting for a cashless bike insurance policy. However, you may have to pay some applicable deductibles.

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