Go Back   Team-BHP > BHP India > Team-BHP Reviews > Indian Car Loans & Insurance


Reply
 
Thread Tools Search this Thread
Old 9th November 2017, 18:54   #16
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,234
Thanked: 2,486 Times
Smile Re: IRDA issues guidelines for car dealers selling insurance

Quote:
Originally Posted by jayakumarkp View Post
While, TATA AIG person (infact multiple people - First the sales person and then his lead) on call insisted that they would provide cashless at Ford dealership. Whom was i to believe.
Generally the Insurance co publish a list of garages with whom they have cashless tie up either on their websites or upon request. If the Ford workshop is mentioned in the list then rest assured, Tata would have the cashless tie up.

Generally, Car manufacturer have a national tie up with a particular Insurance co. For Eg Ford with Royal Sundaram, Fiat with Future Generali and so. The commission earned from these Insurance co during the sale of Insurance co is the highest. The dealers do earn the commission from other Insurance cos, but of varying rates. Hence most dealers/workshops of particular brand tend to push certain Insurance cos and use some strong arm tactics of making the customer fall for the no cashless in case of no policy rule. A knowledgeable customer knows how to work his way out of such tactics.
ghodlur is offline   (1) Thanks Reply With Quote
Old 10th November 2017, 11:23   #17
BHPian
 
jayakumarkp's Avatar
 
Join Date: Aug 2008
Location: Pune
Posts: 163
Thanked: 36 Times
Default Re: IRDA issues guidelines for car dealers selling insurance

Right. The TATA AIG guy insisted and pushed a lot saying Ford dealership is supported for cashless by their team.
However, he could not provide any proof of the same, neither was i able to find Dhone ford, pune listed in their website as cashless supported garage. Hence, decided to stick to RoyalSundaram.
jayakumarkp is offline   Reply With Quote
Old 16th November 2017, 14:30   #18
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,234
Thanked: 2,486 Times
Smile Re: IRDA issues guidelines for car dealers selling insurance

Insurance Regulatory and Development Authority of India (IRDAI) vide press release dated November 01, 2017 has launched new portal for Motor Insurance Service Provider (MISP). All General Insurers and Insurance Intermediaries will be required to upload details of MISPs to be appointed by them and the designated persons and sales persons thereof to Insurance Information Bureau of India (IIB) in the formats to be shared with these entities. Data upload of MISPs etc. would be enabled on IIBís Portal commencing November 01, 2017.

https://www.irdai.gov.in/ADMINCMS/cm...eNo3310&flag=1

What this tells is going forward it will be clear whether a said dealer is authorized by the Insurance co to sell the motor policies or not.

The web link for MISP is https://misp.iib.gov.in
The MISP portal web page is still in the stage of infancy. What data would be available to general public will need to be seen in the coming days once the portal is fully functional.
ghodlur is offline   Reply With Quote
Old 16th November 2017, 14:37   #19
Distinguished - BHPian
 
libranof1987's Avatar
 
Join Date: Sep 2010
Location: All over!
Posts: 4,397
Thanked: 4,576 Times
Default Re: IRDA issues guidelines for car dealers selling insurance

Quote:
Originally Posted by jayakumarkp View Post
Delaership said, they have cashless is available for only NewIndia, Royal Sundaram and one other provider.
When I got my car in June '16, the four "preferred" providers were New India, Royal Sundaram, Iffco Tokio and Bajaj Allianz.

I have a New India policy but from an agent and Talera Ford refused to honor cashless. They say that the policy code is different when you take one from the dealer and they will only honor that.

So, even within these "preferred" providers, cashless is only honored when you take a policy from the dealer, which is at least 20% more than what you can get from other sources. And no, Sai Sakshi Ford (who I got the car from) said they wouldn't match a 20% lower quote.

I'm planning to start a thread on this. I had the same experience with New India at a Hyundai dealership in Gurgaon.
libranof1987 is offline   Reply With Quote
Old 16th November 2017, 14:58   #20
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,234
Thanked: 2,486 Times
Smile Re: IRDA issues guidelines for car dealers selling insurance

Quote:
Originally Posted by libranof1987 View Post
So, even within these "preferred" providers, cashless is only honored when you take a policy from the dealer, which is at least 20% more than what you can get from other sources. And no, Sai Sakshi Ford (who I got the car from) said they wouldn't match a 20% lower quote.
Firstly, you will need to get information from all the Insurance co mentioned above that they have a cashless tie up with that particular workshop.

Secondly, you will need to write to Ford explaining them the arm twisting tactics by the workshop. Tag the dealer and Ford on social media websites about the issue

Thirdly, drop a complaint on IRDA website about unsatisfactory services of the Insurance co. This will force the Insurance co to deal with the workshop.

Hope the above helps.
ghodlur is offline   Reply With Quote
Old 16th November 2017, 16:20   #21
Distinguished - BHPian
 
saket77's Avatar
 
Join Date: Dec 2012
Location: Ranchi
Posts: 3,394
Thanked: 5,342 Times
Default Re: IRDA issues guidelines for car dealers selling insurance

^Ditto here. I purchase the insurance for my Civic directly from insurer's website. Though thankfully, I have never required to put up a claim, but I have enquired for the cashless facility many times from the HASS at our place and they have every time told me that the facility will not be cashless, in case the need arises.

Even though the particular Honda authorised service center is in the 'cashless garage list' of the insurer, then I don't understand why they are not providing it to the customers.
saket77 is offline   Reply With Quote
Old 16th November 2017, 19:07   #22
Distinguished - BHPian
 
libranof1987's Avatar
 
Join Date: Sep 2010
Location: All over!
Posts: 4,397
Thanked: 4,576 Times
Default Re: IRDA issues guidelines for car dealers selling insurance

Quote:
Originally Posted by ghodlur View Post
Firstly, you will need to get information from all the Insurance co mentioned above that they have a cashless tie up with that particular workshop.
Done; they confirmed there was a cashless tie-up.

Quote:
Secondly, you will need to write to Ford explaining them the arm twisting tactics by the workshop. Tag the dealer and Ford on social media websites about the issue
Done.

Ford said the dealer will resolve it; initiated a conference call. Dealer said, "There has to be some motivation for customers to take insurance from the dealer. Afterall, they need some commission too."

Quote:
Thirdly, drop a complaint on IRDA website about unsatisfactory services of the Insurance co. This will force the Insurance co to deal with the workshop
Done. No response.

The same workshop offers cashless from the same insurance provider as long as the policy is issued by the dealer.
libranof1987 is offline   Reply With Quote
Old 17th November 2017, 08:08   #23
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,234
Thanked: 2,486 Times
Angry Re: IRDA issues guidelines for car dealers selling insurance

Quote:
Originally Posted by libranof1987 View Post
Dealer said, "There has to be some motivation for customers to take insurance from the dealer. Afterall, they need some commission too."
What a horse load of BS!!!!.

When even Ford cannot control them, no point in giving them any business. I hope there is an alternate workshop available. I guess Talera Ford must be blacklisted atleast on the BHP forum and any prospective customer should be forewarned of the hassles to be faced.
ghodlur is offline   Reply With Quote
Old 28th November 2017, 13:17   #24
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,234
Thanked: 2,486 Times
Smile Re: IRDA issues guidelines for car dealers selling insurance

This news came as a bit of surprise.

IRDA has hiked the commission rates for the agents selling motor insurance from the Insurance cos. The commission which Insurance co will pay to an agent for the Comprehensive insurance (covering own damage + TPL) for 4 wheelers has been hiked from existing 10% to 15% and for 2 wheelers from from 10% to 17.5% of the annual premium. For TPL only policies, till date a flat rate of Rs 100 -150 was given to the agents to cover the costs which now has been hiked to 2.5% of the annual premium for both 2 & 4 wheelers.

The above has been effected from 1st Nov 2017.

Details in the below link:
https://www.irdai.gov.in/ADMINCMS/cm...eNo3207&flag=1

What does this mean? This means that Agents will now earn better and are expected to give better if not good service to the customers buying Motor Insurance from them.
ghodlur is offline   Reply With Quote
Old 27th December 2017, 13:30   #25
BHPian
 
Join Date: Oct 2015
Location: BLR
Posts: 476
Thanked: 386 Times
Default Re: IRDA issues guidelines for car dealers selling insurance

My Alto is due for insurance renewal soon. My dealer - Pratham motors has been using the scare tactics and cashless claim facility BS to coerce me in to buying from them. Here is a poster explaining why Maruti Insurance is best and safe according to them!!


IRDA issues guidelines for car dealers selling insurance-maruthi-benifts.jpg
sairamboko is offline   (2) Thanks Reply With Quote
Old 1st April 2018, 12:08   #26
BHPian
 
FrodoOfTheShire's Avatar
 
Join Date: Jan 2018
Location: Bhubaneswar
Posts: 96
Thanked: 249 Times
Default Re: IRDA issues guidelines for car dealers selling insurance

Quote:
Originally Posted by libranof1987 View Post
Forget not being able to renew online if Insurance is bought through the dealer; dealers these days have a convenient excuse to not offer cashless if you haven't taken the policy through them.

Ford and my Ford dealer have gone to the extent of giving this in writing: they *may* not honor cashless if the policy is taken outside. *Even if the issuer is one of Ford's recommended*.

I had lodged a complaint with Ford with IRDA in cc; Ford gave me off the record advice about how it helps the dealer if policy is issued through them.
Hi Libran! Need your advice here as you are an existing EcoSport owner. I booked the facelifted EcoSport recently. Regarding insurance, this is what my dealer said -

1) Ford has tie-ups with Royal Sundaram, IFFCO Tokio, Bajaj Allianz and New India under its "Preffered insurance" service. This will provide pan India cashless facilities at Ford service stations
2) Additionally, the dealer has separate tie-ups with HDFC Ergo and Tata AIG. This will ensure cashless facility from that dealer's service station only
3) If insurance is taken from above companies directly (forget other companies) then cashless facility will NOT be provided by Ford/dealer. Cashless facility will only be provided if insurance taken through Ford Preferred or through dealer.

I spoke to the GM sales of the dealership. As per him, cashless facility is a an understanding between Ford/dealer & the insurance companies. During cashless claims, the service center releases the car to the owner post-repair, but the insurance companies take around 10-15 days to settle the claim with the dealer. So basically the dealer is extending credit to the insurance companies by letting the car go and getting payment only after few days. Plus Ford/dealer employ additional people to take care of the claim settlement process. So they need to have some margin on the insurance policies sold, to justify the cost of providing this facility/service to customers. Insurance companies will say that they have cashless arrangement with so and so service stations, but it depends on that dealer whether to honor it or not. He explained this very elaborately and threw in some supposedly horror stories about insurance policies bought outside/online.

I checked the quotes online directly from company's website. As of now, HDFC Ergo is providing the lowest quote of ~21k for Zero Dep and Return to invoice with 95% ex-showroom price as IDV. Royal Sundaram provides quote of ~29k with same add-ons but 91% ex-showroom price as IDV (populated by default and cannot be changed). The dealer's quote would be 3-5k more and Ford Preferred quote would be 7-10k more! Also, as mentioned on the forum, policies bought from dealers cannot be renewed online.

What is your advice/suggestion on this?
FrodoOfTheShire is offline   Reply With Quote
Old 1st April 2018, 19:54   #27
Distinguished - BHPian
 
libranof1987's Avatar
 
Join Date: Sep 2010
Location: All over!
Posts: 4,397
Thanked: 4,576 Times
Default Re: IRDA issues guidelines for car dealers selling insurance

Quote:
Originally Posted by FrodoOfTheShire View Post
Hi Libran! Need your advice here as you are an existing EcoSport owner. I booked the facelifted EcoSport recently. Regarding insurance, this is what my dealer said -

1) Ford has tie-ups with Royal Sundaram, IFFCO Tokio, Bajaj Allianz and New India under its "Preffered insurance" service. This will provide pan India cashless facilities at Ford service stations
Correct.

Quote:
3) If insurance is taken from above companies directly (forget other companies) then cashless facility will NOT be provided by Ford/dealer. Cashless facility will only be provided if insurance taken through Ford Preferred or through dealer.
Correct. Found it out the hard way. No amount of threatening, complaining, writing emails to IRDA/ Ombudsman helps.

Quote:
What is your advice/suggestion on this?
When I bought my car, my dealer offered a New India policy at 31k (0-dep) but my agent gave the same policy (with Engine Protector) for 16k so naturally I went with him. I then renewed it at 20k (since premiums went up) when dealer quoted 27k ish.

I then had a claim, repair estimate being 80k. ASC refused to honor cashless so I had to pay this amount and then I got the refund after two weeks of delivery. Luckily the payment was on such a date on my credit card cycle that the payment was due after the refund was expected.

Now, having burnt my hands, I will be renewing through a dealer.
libranof1987 is offline   (1) Thanks Reply With Quote
Old 1st April 2018, 22:54   #28
BHPian
 
Join Date: Jul 2014
Location: bangalore
Posts: 59
Thanked: 151 Times
Default Re: IRDA issues guidelines for car dealers selling insurance

Dealerships get bulk discounts from insurance companies and that is why they insist that the insurance amount be included in the purchase price.
While purchasing a Polo, the dealer agreed to 'match' my insurance price. But when I insisted that they produce a letter from the insurance company that they are their authorised agent, they refused and I finally got the insurance done outside.
I did this because a friend bought a Duster with insurance built into the price. A cover note was issued but with incorrect engine/chassis no. An accident claim was raised but the insurance Co. refused to honour their policy citing the wrong engine/chassis no. My friend went to court where the insurance Co. asked my friend to provide proof that payment has been made to them and he does not have it. The dealer only gave him the cover note but no separate receipt for the insurance amount collected. The matter is still being fought in court.
Olympal is offline   Reply With Quote
Old 3rd April 2018, 18:47   #29
BHPian
 
The Great's Avatar
 
Join Date: Feb 2007
Location: Mumbai
Posts: 649
Thanked: 670 Times
Default Re: IRDA issues guidelines for car dealers selling insurance

Quote:
Originally Posted by Olympal View Post
Dealerships get bulk discounts from insurance companies and that is why they insist that the insurance amount be included in the purchase price.
The discounts are same, be it the dealer or the agent. Infact the dealers do a lot of blunders to reduce the premium, for eg reducing the IDV to insane levels just to show the final figure attractive.

Quote:
Originally Posted by Olympal View Post
I did this because a friend bought a Duster with insurance built into the price. A cover note was issued but with incorrect engine/chassis no. An accident claim was raised but the insurance Co. refused to honour their policy citing the wrong engine/chassis no. My friend went to court where the insurance Co. asked my friend to provide proof that payment has been made to them and he does not have it. The dealer only gave him the cover note but no separate receipt for the insurance amount collected. The matter is still being fought in court.
Firstly the cover-note is your biggest proof and weapon to get the claim as well as teach the dealer a lesson.

The insurance amount and road tax is generally shown separately while purchasing the car. So check the Invoice / Bill of the vehicle. If the bill does not have separate figures then:

A police complaint has to be lodged against the dealer.

Since the dealer has given a cover-note, and wrote wrong engine number and chassis number he will be accounted for misrepresentation and fraud by typing in wrong info and not paying the collected premium to the insurance company. According to law, no vehicle can be delivered without insurance, hence the dealer will be answerable to this.

Your insurance company has to pay your claim since the cover-note is issued. The consumer court (ombudsman), will rule it in your favour if you write the above facts.

Please feel free to write the progress about this case, I will try to give as many pointers as I can as per my knowledge Sir.
The Great is offline   Reply With Quote
Old 8th July 2018, 20:38   #30
BHPian
 
Join Date: Nov 2008
Location: Mumbai/Pune
Posts: 242
Thanked: 249 Times
Default Re: IRDA issues guidelines for car dealers selling insurance

Hyundai showroom is refusing to book the creta unless insurance is purchased from them. They are selling insurance for around 64K while the lowest quote I got from outside is around 33K for the same zero dep coverage. I was given the same gyan about all india cashless claims etc. They dont seem to budge at all.
aviraj is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
IRDA: 75% of two-wheelers in India don't have insurance! GTO Motorbikes 9 27th May 2015 13:07
IRDA revises Compulsory Deductible Amount Marlon Indian Car Loans & Insurance 8 23rd April 2015 13:29
IRDA launches Highway Ambulance pilot project ghodlur Indian Car Loans & Insurance 1 18th April 2014 03:06
FM to cap the Third party liability, IRDA supports ghodlur Indian Car Loans & Insurance 1 4th October 2012 10:37


All times are GMT +5.5. The time now is 10:29.

Copyright ©2000 - 2018, Team-BHP.com
Proudly powered by E2E Networks