How exactly does cashless commercial auto insurance policy work?

There are few steps in cashless settlement of motor insurance policy claims:

  • The insured buys a vehicle insurance policy from a company that has tie-ups with a wide network of garages in the country.
  • If the insured vehicle damages itself during an accident, the policy holder can choose to get it repaired at one of the garages from the network.
  • The insurance company pays the garage directly for the repair work done on the vehicle.
  • The insured is only required to pay on the deductibles and for depreciation of replaced parts.