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Benefits of a Cashless Garage Facility in Two-wheeler Insurance Explained

By Juhi Walia
20 July 2022, 2:30 PM

Two-wheelers are India's most convenient mode of transport for various reasons. They offer speed, save time, need less maintenance, are cost-effective, and are best for escaping traffic. But sometimes, the cost incurred on repairing a motorcycle or other associated expenses may burden its owner. 

Apart from being obligatory by the law, one must purchase bike insurance to avoid the expensive bills. There are three main types of vehicle insurance: third-party insurance, comprehensive insurance and standalone own damage insurance. All three are different from each other and have various features. However, if you want to escape the workshop's costly damage and repair bills, you could either buy a comprehensive or standalone bike insurance policy. But since a comprehensive policy comes with the mandatory third-party bike insurance cover, a standalone policy won't suffice that covers only own damage.

Your two-wheeler insurer will offer a cashless facility that you can claim anytime you want and avail of insurance benefits. Read till the end to understand the mechanism of cashless garages for two-wheeler insurance, their importance, benefits, and ways to claim your cashless garage facility. 

Cashless Garages - A Primer 

Two wheeler Cashless garages are unique service stations for the policyholder that facilitate cashless claims. They are a part of comprehensive bike insurance

In a cashless garage, the insurer covers all the expenses incurred on repair or damages, and the garage and the insurance company directly settle the bill. However, you need to contact your insurance company to find the cashless garage with which your insurer is tied up. 

Cashless Garage - The Mechanism

Every insurer acquaints their policyholders about their network garages to claim cashless facilities. Still, if you don't know about your insurer's cashless workshop, you can visit their website or ask them to provide you with a list of service stations. An insured bike owner can avail of cashless benefits when in an accident or if their two-wheeler gets damaged. 

You need to inform your insurance company about the incident immediately. After that, you must take your vehicle to the nearest cashless service station. Provide the policy documents to the workshop and wait for the approval for cashless services, which might take a few minutes. 

After submitting the policy details, the surveyor team will inspect your vehicle and provide the details to the insurer before repairing it. After completing your vehicle's repair, the cashless workshop will directly transfer the service charges and other necessary documents to the insurance provider. The insurer will then pay for all these. But remember, policyholders must cover the cost of the depreciation of gadgets, accessories and parts. 

What Significance Do Cashless Garage Facilities Hold? 

Here are some points demonstrating why cashless garage facilities are vital for a two-wheeler owner. 

Untroubled Claims 

The foremost reason for using a cashless garage facility is that a policyholder can quickly raise a claim for the cashless repair of their two-wheelers without going through any complicated or time-consuming process. 

Relief from Unexpected Financial Burden

Any unpleasant situation can come at any time; it does not only affect your vehicle but also adds a huge financial burden on you. But with your two-wheeler insurance policy, you can easily claim for the expensive repairs and pay only for the depreciation and necessary deductibles for certain parts. 

How to Claim the Cashless Garage Facility? 

To avail the benefits of cashless repair services from the bike insurance policy, you need to follow the given steps: 

  • When you are in an accident, you must inform your insurer first.
  • File a cashless bike insurance claim request.
  • In case of theft or a severe accident, you should file an FIR at the nearby police station.
  • Your insurance company will send their survey team to inspect the damage and loss incurred on the vehicle.
  • After that, you must submit all the policy documents for cashless claim requests to the surveyor and wait for verification.
  • Once your request is approved, your insurer will provide you with the information of the nearest network station, or you can also find it on their website.
  • Take your vehicle to the nearest cashless workshop provided by the insurer.
  • Give it the approved request to begin the repair services.
  • Apart from deductibles and depreciation of several parts, the insurance company will pay all that to the garage.

What are the Benefits of a Cashless Garage?  

A cashless garage is one of the best features of bike insurance. The following are some advantages offered by a cashless garage facility:

Read more - Importance of Two Wheeler Insurance

Quality Services 

As the insurance company is involved in the payment, they ensure high-quality services to the policyholder. 

Easy Accessibility 

Many bike insurance companies tie up with a good network of garages. Hence, finding a cashless service station quickly and conveniently helps resolve policyholders' muddles.   

Trouble-free Procedure

The steps to raise claims for cashless facilities are hassle-free. You only need to submit the documents and wait for confirmation to repair your vehicle. 

Quick Claim Settlement 

The insurance provider does not delay making a settlement for the expenses incurred on the repair.  


There is nearly zero possibility of fraud as the insurer's surveyor inspects the entire procedure. The repair bill and other estimations are directly transferred to the insurance company. 

What are the Drawbacks of Cashless Garage Facilities? 

The cashless garage assists the most when one experiences any undesirable circumstances. However, there are also a few drawbacks that you should know about: 

  • The policyholder must pay for the damage of accessories not present in the two-wheeler insurance policy.
  • There are fewer cashless garages, so it doesn't seem very easy to find the nearest network garage and take your vehicle to a specific location.
  • The insurance provider only pays out the cost incurred on the vehicle repair.


You can easily avail the cashless claim feature by purchasing a bike insurance policy. You can save money, get quality services, a hassle-free process, and fast claim settlement with a cashless garage facility. However, if you want the best bike insurance company, you can visit Paytm Insurance, as it offers trouble-free services and affordable policies.

Read more -


1. What is a network garage in bike insurance?

Network garages refer to the garages an insurer has tied up with for providing cashless repair services. If the policyholder owns a cashless card, he/she can visit any network garage to repair the bike without paying an upfront amount, except deductibles and depreciation costs.

2. What is the garage settlement in bike insurance?

Garage settlement refers to the cashless repair facility extended to policyholders by bike insurance companies.

3. What is cashless bike insurance?

Cashless bike insurance refers to the process where a policyholder can get his/her bike repaired at a network garage without paying any cash. 

4. Is a cashless claim good?

A cashless claim is a much better option than the reimbursement process since you do not have to pay anything to get a damaged bike repaired. Whereas in a reimbursement settlement, you will need to pay first and get that reimbursed by the insurer later.

5. Why would a cashless claim be rejected?

A bike insurance cashless claim can be rejected if you visit a non-network garage. Cashless claims may also be rejected if any information is incorrect.

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