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Cashless Bike Insurance: Benefits of Cashless Two-wheeler Insurance

Team AckoOct 22, 2021

The vehicle insurance industry has emerged from its traditional practices and embraced newer technologies and innovations to provide a seamless and faster customer experience. One of the most significant changes has been the digitisation of the processes involved in buying, renewing, and filing claims. In addition, new-age insurers such as ACKO are taking the industry to the next level by offering an “online-only” approach.

By offering an online-only approach to customers, riders can insure their bike with a tap of a finger. This article is about the benefits of cashless two-wheeler insurance and its impact on the vehicle insurance industry. It also talks about how you can experience a seamless journey right from buying the policy to renewing it and even raising a claim.

Cashless Bike Insurance

What is Cashless Bike Insurance?

While many insurers offer only cashless claims, new-age insurers like ACKO are going further by enabling customers to buy, renew and raise claims in a cashless environment. It eliminates the need to pay by cash, cheques, or Demand Draft (DD) to buy, renew or settle claims. This results in a faster and efficient mode of payment, enabling customers to insure their bikes or get their claims settled almost instantly.

The process of buying bike insurance at ACKO does not require you to fill a lengthy form, pay by cash/cheque/DD and then wait for the insurance company to insure your vehicle. Instead, share a few details of the bike and previous policy on our website or mobile app, select the plan, and pay the insurance premium through the online mode. Simple right? Yes, you do not have to pay by cash to insure or even renew the plan.

This is also the same while filing a claim against your policy, making the ACKO bike insurance process the least cumbersome. The following section helps you learn about the most uncomplicated cashless bike insurance claims through ACKO.

How Does Cashless Claim Work?

Let us take an example to understand the term ‘Cashless Claims.’ If your bike is damaged due to an accident and requires repairs, you have to visit a garage, get it fixed and expect the insurance company to cover the repair costs. However, if you get the bike repaired at any of the ACKO’s network garages, ACKO will pay the repair costs directly to the garage, and you do not have to pay from your pocket. This type of agreement is known as “Cashless Bike Insurance.”

Before you understand the details of cashless claims, you need to understand each type of bike insurance plan in detail.

Third-party Bike Insurance Policy

Your bike must be insured at least with this type of insurance plan since it is mandatory as per The Motor Vehicles Act, 1988. It provides financial coverage against injury or death to the third party or damages to their property. While this plan is a legal requirement, it does not cover your bike’s damage. Hence, you need to opt for the Comprehensive Bike Insurance Plan.

Comprehensive Bike Insurance Policy

For broader coverage that provides financial coverage against third-party liabilities and damages to your bike, the Comprehensive Insurance Plan comes bundled with both the mandatory Third-party Bike Insurance Policy and Own Damage (OD) insurance. The latter provides financial protection against damages to your bike arising due to an accident, natural or man-made calamities (floods, riots, etc.), fire or explosion, and losses arising due to the theft of the bike or in case it suffers a total loss.

It is recommended that you opt for the Comprehensive Bike Insurance Plan to stay financially protected against damages to your bike and third-party liabilities.

How to Claim Against Cashless Bike Insurance?

At ACKO, you do not have to spend from your pocket to repair your bike. We offer an instant claim settlement for minor damages such as a dented oil tank, broken headlamp, etc. Here are the steps to raise a claim for minor damages.

  • Step 1: Log in to your ACKO account through our website or mobile app.

  • Step 2: Submit the photos of your damaged bike and get your money directly in your account in a matter of a few hours.

Follow the same steps to file a claim for significant damages; our claims team will guide you through the next steps.

Benefits of Cashless Facility

Here are the benefits of the cashless facility in bike insurance.

  • Super-fast Claims: ACKO provides instant claim settlement for minor damages, and the turnaround time is about 2 hours.

  • Cashless Repairs: ACKO does not let you spend money from your pocket at any point during your claim, except for the deductibles as per the policy terms.

  • Zero Paperwork: Skip tedious paperwork involved in buying, renewing, or raising claims at ACKO. All processes are through the digital environment and do not require you to fill lengthy documentation.

Documents Required for Cashless Two-wheeler Insurance Claim

At ACKO, we do not believe in cumbersome paperwork or documentation. Hence, we have removed the need for you to submit physical documents while raising your claim. You can raise claims at ACKO through a smartphone or a computer and upload the required documents. Simply visit www.acko.com or the mobile app, click on “claim now” against the insurance policy to file your claim, and we will take care of everything.

Reasons for Your Claim Being Rejected

Here are the circumstances where ACKO can reject your claim.

  • Expired insurance policy

  • Fraudulent claims

  • Expired driving license

  • Illegal racing and reckless driving

  • Mechanical or electrical failure

  • Usage of the bike not mentioned in the policy document

  • Delay in raising the claim

  • Modifications to the bike

  • Damages incurred outside the geographical limits

  • Regular wear and tear

  • Any other damages not a part of the policy document

How is it Different from Reimbursement Claim Policy?

The comparison table below offers an insight into the difference between cashless and reimbursement claim policies in bike insurance.

Parameter Cashless Bike Insurance Reimbursement Bike Insurance
Claims ACKO settles the repair bill directly with the garage. You will pay the repair bill from your pocket and then claim for reimbursement.
Procedure It is a hassle-free and paperless claims procedure made possible through smartphones or computers with an internet connection. It is a cumbersome procedure since it requires lengthy paperwork.
Speed of claims settlement Instant claims settlements. Delayed claims settlement due to the lengthy procedure.
Liability of the policyholder You need not pay from your pocket, except for the deductibles. Here, you need to pay from your pocket.
Minor damages Instant claim settlement through on-account money transfer. Delayed claim settlement since the assessment of the claim may take time.

Frequently Asked Questions:

Here are some of the commonly asked questions about cashless bike insurance.

How to raise claims in cashless bike insurance?

Visit the website or the mobile app to access your account. Select “claim now” against the bike insurance policy to file the claim. At ACKO, you receive instant claim settlement in case of minor damages (dent on the fuel tank, broken headlamp, etc.), and in the case of major damages, our claims team will guide you through the process. There is no paperwork involved in filing claims with ACKO.

Can I raise a claim after repairing the damages to my bike?

If you do not inform ACKO before you repair the damages to your bike, your claim will stand rejected. ACKO will arrange for an inspection to assess the extent of the damages. Ensure you inform us before you repair your bike.

How many claims can I raise against my cashless bike insurance plan?

There is no limit to the number of genuine claims you can raise during the policy period. However, it is recommended that you do not submit claims for minor damages to enjoy the No Claim Bonus (NCB) discount.

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