Cashless vs. Reimbursement: The Real Difference

We recently handled a claim that was a perfect case study on the difference between "Cashless" and "Reimbursement."

It started with a choice. My client’s car met with an accident, and they had two options: the Authorized Service Center (which was cashless) or their Trusted Local Garage (which was not).

They chose the local garage. Financially, it was smart—the bill was nearly 50% lower. But while the repair was great, the paperwork was a struggle.

The "15-Day" Myth vs. Reality

When you pay out of pocket, you think, "I’ll get the refund in 15 days." That’s the theory. But here, we had to wait for everything else. The garage took days to email the insurer. The surveyor visited late. Then, the surveyor fell sick.

The GST Trap

The car is fixed, but the payment is stuck. Why? The GST Rule. The insurer approved the repair amount but cannot release the 18% GST component yet. They have to wait for the garage to pay the tax to the government first.

So instead of a simple refund, the client became a temporary Project Manager for 2 months.

What This Means For You

• Local Garage (Reimbursement): Save money on the bill, get custom work, but wait 30-60 days for money.
• Network Dealer (Cashless): Pay more premium, but ignore GST rules and sick surveyors.

We solve this by verifying the map before we sell. We don't look at brochures; we check if the garage near you has an active tie-up right now.