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Old 29th September 2020, 12:41   #1
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Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Buying a car should be a pleasant experience. There should not be a need to toil to get one’s legal rights. Especially when you want to buy a car from Hyundai, which supposedly has great customer care. I used to take Maruti’s customer care for granted. Any concern I raise about the dealer with Maruti got addressed in 2 hours flat. Even during the lockdown, I raised an issue with Maruti about servicing of my Wagon-r and the workshop manager contacted me in half an hour and resolved the issue in one hour. After having experienced Hyundai’s customer care, I now appreciate just how precious that kind of attention to customer is.

Below is my experience with Hyundai’s famed customer care (or should I say customer neglect?).

After having driven my Wagon-r for nearly 8 years, I have been craving for something automatic with better NVH level and safety. I pre-booked a Creta in March 2020. Model chosen was 1.5 SX IVT from Hyundai’s website. I paid Rs. 25000, and I got an sms saying the dealer will contact me. No contact. Then there was lock-down. So, I waited till the lockdown was over. After lockdown I called up dealership several times, but I got no response. The front desk directs my calls to some person, that person says he is busy and will call back but nothing happens. I call up Hyundai customer care on 03-07-2020, I got an email saying the regional office or the dealership will contact me in 3 days. Nothing happens. I call up Hyundai customer care again, they say they will connect me to the dealership and then after putting me on hold and subjecting me to some horrible hold music, disconnect me.

I finally visit the dealer Modi Hyundai – Thane. I wanted to cancel my booking. I test drove the car. Although I liked the NVH level, I thought it was overpriced. But, when I thought about it, every other crossover that I looked in or below the segment was more of a compromise than Creta. Current Ecosport is a far worse deal than the 2018 one. Seltos does not have ESP, TC, Hill assist in any model below the GTX+. Nissan is a damaged brand. Venue is too small and bare-bone (without rear wiper!!). So, against all my good judgment, I convinced myself that Creta is better of the lot and I should buy it (RavenAvi's review had a great role in my decision as well).

So, I inform the sales advisor that I want to buy the Creta. I ask that I will buy car insurance from outside, unless they can match the quote that I get from outside. I am informed that they will not give any discount on Creta. I convey that I am not asking for any discount. I am only asking for what is my legal right. I call up Hyundai customer neglect number and ask them if I have to buy insurance from Hyundai. They say I am free to buy from outside and they raise an issue on my behalf. I again get an email saying the dealership or regional office will reach out to me to resolve the issue. In case they do not reach out to me in 3 days, they provide me contact of their regional office. Here is the deal, though. The email address they provide is wrong. It does not exist. And the phone number they provide is not picked by anybody. So, there is no recourse for you if they do not contact you. Nowhere is there an escalation matrix in Hyundai’s website or in their email.

To summarize, the issue is this: Modi Hyundai – Thane is insisting on customers buying car insurance from them, thereby committing something that is illegal. Hyundai India is informed of this practice and lets it continue anyway. I had great expectation from Hyundai, but I think they are actively encouraging their dealers to indulge in malpractice. Moreover, I think the Hyundai customer neglect acts more as a firewall between customer and management than a link between them.

I see that many members have similar complaints about Hyundai and Kia. Can we at least raise the issue in social media and give it publicity so that people do not succumb to this kind of practice? My issue is still unresolved. I refuse to be a part of the illegal practice. I will wait to see if any action is taken by Hyundai. I will update this thread accordingly.

Last edited by ashlil : 29th September 2020 at 14:58.
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Old 29th September 2020, 18:49   #2
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Thread moved from the Assembly Line to the Dealerships Section. Thanks for sharing!
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Old 29th September 2020, 19:07   #3
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

I've purchased a number of cars and have never been forced to buy insurance from the dealer. Hyundai/Kia's dealers are getting cocky!

The main reason I do my own car insurance as my NCB is carried forward from the old car to the new one @50% and that adds up to a hefty discount on the own damage premium. If you have a NCB on your old cars approach your current insurance company for a deal.

Last edited by R2D2 : 29th September 2020 at 19:09. Reason: typo
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Old 29th September 2020, 20:41   #4
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Please look up the Insurance ombudsman who has authority in your geographical region as per the IRDA's website. A quick Google search will reveal this information to you.

This is purely an illegal play by the dealership who will have obtained a Brokerage/Agency license from the IRDA. Hyundai/Kia surely will have no role in telling dealerships how to run their Insurance Brokerage side-businesses.

If you lodge a complaint, the concerned insurance ombudsman will investigate and determine if the dealer is indeed guilty as charged. If found guilty, their brokerage/agency license can be cancelled by IRDA. The customer should not be compelled to buy insurance from any particular distribution channel in this manner.
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Old 29th September 2020, 20:58   #5
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Quote:
Originally Posted by ashlil View Post
I see that many members have similar complaints about Hyundai and Kia. Can we at least raise the issue in social media and give it publicity so that people do not succumb to this kind of practice? My issue is still unresolved. I refuse to be a part of the illegal practice. I will wait to see if any action is taken by Hyundai. I will update this thread accordingly.
Maybe you can try contacting IRDAI. I think they had released a circular terming this practise illegal (though I am not able to find that particular one).

https://www.google.com/amp/s/www.dna...er-2741820/amp

Pushing against Hyundai on social media will have a more definitive impact than going through the escalation matrix. As you said, Hyundai and these unscrupulous dealers are hand in glove.
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Old 30th September 2020, 14:56   #6
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Today, I subjected myself to another session of agony by calling up Hyundai Customer Neglect. I told them that I had raised a complaint (gave them the complaint number) and nobody has reached out to me. The person on the other side of phone offers to put me on a conference call with the showroom in-charge. I related my earlier experience of being put on hold and then being disconnected. She assures me that it would not happen this time. I am on hold for some time but nobody picks up the phone in the showroom. She says she will escalate it to Hyundai and somebody will reach out to me. So, in summary, nothing has moved. Hyundai does not seem interested in dealer malpractice. I am assured each time that somebody will reach out to me. But, that somebody has been missing all this while.

All this makes me think: how come we do not hear enough complaints about how Hyundai treats its customers? Am I the only customer to be cold-shouldered by Hyundai?

Last edited by ashlil : 30th September 2020 at 14:58.
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Old 30th September 2020, 16:09   #7
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

This is Hyundai we are talking about. There's a showroom in every other lane. Just take your business elsewhere. I don't think this is a standard practice across showrooms. Otherwise book a TD online through carwale and book the car through them. I'm sure they'll let you have the insurance you want or price match.
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Old 30th September 2020, 17:30   #8
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Quote:
Originally Posted by Iyencar View Post
This is Hyundai we are talking about. There's a showroom in every other lane. Just take your business elsewhere. I don't think this is a standard practice across showrooms. Otherwise book a TD online through carwale and book the car through them. I'm sure they'll let you have the insurance you want or price match.
The point here is not whether I can find another dealer. The point here is that a Hyundai dealer is indulging in blatant illegal practice. Hyundai is informed of it. And it chooses to let the dealer go about it. I suspect, Hyundai might even be encouraging its dealer to do this.
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Old 30th September 2020, 18:41   #9
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Quote:
Originally Posted by ashlil View Post
The point here is not whether I can find another dealer. The point here is that a Hyundai dealer is indulging in blatant illegal practice. Hyundai is informed of it. And it chooses to let the dealer go about it. I suspect, Hyundai might even be encouraging its dealer to do this.
I think you are making a big deal out of an known issue sales associates across all brands and dealership try. It's not a Hyundai issue, it's an industry issue. I faced it 10 years back with my VW dealer, I faced it a year ago with my Royal Enfield dealership. Both places I did not budge and threatened to walk out of the deal (and other threats). Both cases I was ready to walk away if they didn't agree. Both cases they agreed when they saw I wasn't giving up.

Do you have any documentation from then that states they won't sell the vehicle without insurance from them? Let them commit to it in writing if they are adamant. If they don't budge, as others have already suggested - move on to a different dealer.
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Old 30th September 2020, 20:46   #10
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Update: Modi Hyundai cancels my booking !!!

Explanation: I had given them a cancellation letter on 18th of September when I had decided to cancel my booking as I had mentioned in the first post. But, after that I had asked them not to cancel and hold onto my letter till advise them. Until this Monday, 28th of September, we were still talking about Insurance and I know that my cancellation letter had not been submitted. But, today I have got my booking amount refunded without me asking for it!

Guess this lets Modi Hyundai off the hook now. They are free to continue their malpractice with other customers.

But, Hyundai's role in this affair has been abominable. No one from Hyundai customer care talked to me. Nobody listened to me and nobody assured me that they would put a stop to this practice. I am quite sure Hyundai is hand in glove with the dealer.
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Old 30th September 2020, 20:53   #11
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Quote:
Originally Posted by ashlil View Post
The point here is not whether I can find another dealer. The point here is that a Hyundai dealer is indulging in blatant illegal practice. Hyundai is informed of it. And it chooses to let the dealer go about it. I suspect, Hyundai might even be encouraging its dealer to do this.
Please don’t let all this dampen your jubilation of buying a NEW car.
Your experience is nothing new.
Every business is desperate in these Covid times.
Talk to the showroom manager in person. Let him know that you are aware of your rights.
Or else wait till your car arrives at dealer stockyard and then be adamant about those guys matching outside prices. If your model is not a hot cake, you WILL have it your way.
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Old 30th September 2020, 23:38   #12
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Quote:
Originally Posted by ashlil View Post
All this makes me think: how come we do not hear enough complaints about how Hyundai treats its customers? Am I the only customer to be cold-shouldered by Hyundai?
You're definitely not the only one. Most of the people I have interacted with in such situations usually give up and choose another dealer or another vehicle. There have been rare occasions that people have also said that the 'small' amount doesn't matter much when buying a car worth lakhs.

But then there are people like you and me who will take it up to the highest authorities possible to get what is fair. After all, it's nothing over the top or illegal we're asking for (ironically).

All said and done, if you're still interested in taking up this issue with them (Hyundai and the dealer), please write a stern mail explaining all the details to the following e-mail addresses:
customercarethane@modihyundai.com
agm.thane@modihyundai.com
and most importantly virendram@hmil.net

I've used this method twice or thrice and it's always worked, the most recent one being a few months ago. If sending the mail doesn't work out and you still plan on going ahead with the deal while keeping your stand, please drop me a PM. I've worked out a few deals for my friends via this dealer and would give my best to help a fellow BHPian too.
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Old 1st October 2020, 20:30   #13
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

I too had been informed to buy it from the dealer but if you talk to them and threaten to take the business elsewhere or just be firm saying that you know the law and you'll get it from outside, they'd budge. Do not rely on Hyundai customer care to help you around this. Just get a quote and there's a way of getting it from outside too. Just to a new dealer.
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Old 2nd October 2020, 08:35   #14
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

This is widely prevalent in the industry. Had a very bitter experience with Maruti 2 years back when booking a brezza. The city has 3 different dealers and not a single dealer agreed to take a booking unless I purchased insurance and basic accessories package. They refused to budge until I escalated to Maruti. Till then the dealers simply refused my booking. Without doubt manufacturers support this behavior by turning a blind eye.
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Old 2nd October 2020, 09:00   #15
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Re: Illegal Practice! Modi Hyundai (Thane) forces customers to buy Insurance from them

Yeah the issues seems to be common amongst Hyundai dealers. A close friend bought an i10 a month or two ago and she was also forced to buy insurance from the dealer. They basically told her “Madam you cannot buy insurance from anywhere else.” The dealer in question here is Downtown Hyundai - Vadodara.

But you’re right. Unless Hyundai tightens up it’s policies and pulls up its dealers, nothing is going to change.
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