What is a Cashless Claim? - Insurance Navy. A Cashless Claim is a feature of an insurance policy that allows the policyholder to avail of the insured service without paying upfront costs. This type of claim is most commonly associated with health insurance policies but can also apply to other types of insurance, like motor insurance.
In cashless claims, the insurer directly settles the bill with the network hospital or service provider instead of the policyholder paying out of pocket and having to file a reimbursement claim. This process eliminates the need for the insured individual to arrange funds for the medical costs, medical treatment, or service. The cashless claim process typically involves the following steps: 1. The insured individual gets admitted to a network hospital or service provider with a tie-up with the insurer.2. The insured or a representative informs the insurance company about the hospitalization or service.3. It’s important to note that not all expenses may be covered in a cashless claim.