Cashless claim settlement means that you can avail a particular service without having to pay for it at the time. Instead, the payment is settled between the policy company and the service provider on their own.
If we opt for Cashless Claim Settlement, we should choose an Insurance Company which has a good network of hospitals or vehicle repair shops that it covers across the country.

Example:
For example, in some health insurance if you are admitted to the hospital then the patient is not required to pay any money but the insurance company pays the hospital bill directly