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Old 1st November 2007, 10:47   #1
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Angry Bajaj Allianz car insurance without transfer

One day I have got a call from HDFC for overdraft account if I have any 4 wheeler. HDFC representative Ganesh (9921352120) had come to my home to collect papers. Later I got to know that I have to keep my car as mortgage. Than I decided not to go for this facility. Before deciding I had already submitted cheques and had signed on agreement. To proceed further car and insurance has to be transfered on my name.

Yesterday I got a mail at my home saying the cheque will be deposited on todays date for renewal of car insurance. Seems like without intimating HDFC's representative had given cheque to Insurance company.

Now the point. I had submitted transfer paper just a week before. Today called my agent he said due to RTO strike it is getting late and my document not yet processed.

I am wondering how is that possible to have car insurance without car being transfered on my name.

I imidiatly made stop payment against that cheque and with reason "Illegle cheque".
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Old 1st November 2007, 14:37   #2
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Pawan, this is a bit confusing. What are you trying to convey to us?

This is what I gather from your post - you purchased a car, and the HDFC guys issued a cheque to insure it. Your complaint is that the insurance is done even before the vehicle is transferred to your name. RIght?

Well, to get the vehicle transferred to your name, there should be a insurance policy covering teh vehicle, not necessarily in your name. Remember that I can take out an insurance policy on YOUR car, and in case of damage, the insurance will reimburse me what loss I suffered, which would be nil.

But, insurance co will certainly pay me if it is my car, even if I am not the registered owner. Therefore, they took the insurance policy because it is required.

What I do not understand is, how can you stop payment of a cheque issued by the bank; or how did the bank issue a cheque signed by you without your knowledge?

Also, it is a standard practise for all bankers / financiers (including nationalised banks) to insist on a comprehensive insurance policy (that is, a policy which covers both third party liability and also own damages for theft, etc) on all cars they finance. Typically, you take out the insurance and hand over a copy of the policy / renewal document to the bank; and if you do not do this on your own, the bank will do this on your behalf and will charge you. There is a standard provision in your loan agreement empowering the bank to do this.
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