[anjan_c2007]

If you have a copy of their quotation/invoice, do also get comparative figures of quotations from insurance companies for the same car.

With these copies as attachments and a covering letter by email, citing his monopolistic dealings addressed to the IRDAI Delhi office, endorsing a cc to their head office in Hyderabad, the matter can be looked into.

Thereafter, please send hard copies to both these offices by speed post. Usually they are prompt in redressal of grievances.

The link:-

https://www.irdai.gov.in/ADMINCMS/cm...o116&mid=1.5.3

[itsbaman]

I have faced exact same situation with my Ford Ecosport. I had my first insurance from Ford Preferred Iffco Tokio. From next year, I switched to ICICI Lombard for their IL Assist service. Ecosport was involved in a major accident in the beginning of this year. The estimated repair cost was around 05 lacs. While Lombard approved the repairs and ready to provide cashless settlement, shockingly it was Ford which was not ready to accept cashless claims from any other insurers other than Iffko Tokio. They call it "In house Insurance" .

Ford demanded 1/3rd of the estimated amount to start the repairs. When I argued with workshop guys, their standard response was "It's the policy of Ford". I don't blame workshop guys as they were doing what they were told. Finally I spoke to their regional GM in Chandigarh. Now here's the funny thing, I purchased as 10 lac car from the same dealer, but not a 20k insurance. And he didn't care about my 10 lacs but my 20k which I didn't gave to them. I mean what is more important for a car manufacturer, selling a car or selling insurance. He finally settled for 50k advance payment.


I recently visited Ford workshop for an issue with my car. I talked to the workshop guys. They were all blaming Ford's top management for exit of Ford from India. I also told then that when you care more about selling insurance than your product, this is bound to happen.

I have Skoda Rapid as well, and I have never faced such situation whenever I claim insurance from Skoda. Once they accepted cashless settlement from an insurer which didn't even had a tie-up with Skoda.


For my next car I will definitely clear such issues in advance and I will definitely not buy from a manufacturer who doesn't give a damn about my decision to go with their product and only cares for insurance.

[DCharger]

Originally Posted by Artyom

As far as insurance is concerned their quote (Hyundai Assurance Program) is way higher when compared to Insurance companies outside.
I told them that the Insurance will be bought from outside unless they are ready to match the figures in which case I will buy it from them.
The dealer cannot match the price and is Ok with us buying it from outside BUT has put a clause forward ie

1. In case of a claim they will not be clearing Cashless claims for us. Repairs will be billed to us by the service center and then we will have to get them claimed from the Insurance agency.

2. Dealer claims that when it comes to cashless claim settlement with the Insurance company it takes them ages and that causes them inconvenience so they don't entertain outside cashless claims.

I have never heard something like this and even when I bought my vehicle 2 years back this was the least of my concern and the dealer was fine with it.

Is there a need for a complaint I should raise against the dealer to Hyundai or the Insurance company to get it sorted?

Appreciate the forum's help.

Unfortunately this is the case with most of the dealers. We bought the facelifted Toyota Fortuner 2X4 in Jan21. The dealer quote for Insurance was Rs. 1,45,000. We requested from outside and got it done for Rs.79,000(Obnoxious Rs. 66,000 difference). It took us a couple of days and phone calls to make it work.

This may not be the case everywhere. I feel dealers make as much money on insurance as they do on vehicle sale and I know few cases where they refused to sell the vehicle if insurance is not bought along.

[itsbaman]

Originally Posted by abhishek46

Even if you do have to make a claim, trust me, a non-cashless claim is not that difficult.
You DO NOT have to run pillar to post. (I am speaking from my own experience).

Non-cashless claims from reputed insurers are not so difficult these days. The real difference is when you have a major accident and repairs are estimated for quite a large amount as was in my case (05 lacs).

Originally Posted by Artyom

Both the centers are singing the same tone.

Yes, they operate as a nexus. Once my colleague wanted to buy Creta in 2018. The quote given by Hyundai's local showroom had handling charges included. I told my colleague that handling charges are illegal. So we talked to another Hyundai dealer in a neighboring district. The other dealer first asked us about the billing address and straight away refused to provide any quote and told us to buy from the existing dealership from our district, as if they were a police station that cannot operate in other's jurisdiction area. Handling charges were standard for their quote.

Originally Posted by Artyom

Let me call the Insurance company and ask them how to handle it or whats the process and then share the same with the dealer to call his bluff.

Even if the insurance company has the workshop listed as cashless garage, it doesn't matter to the workshop. They are not going to provide any cashless claim citing their policy as reason

[Artyom]

First of all I would like to thank everyone of you who have shared their valuable opinion and how should we proceed.Baded on this I have spoken to the SA and asked him to reconsider this and also have spokem to the agent through whom I usally get the insurance renewed and she will check with the Insurance company what can be done.
Will keep the forum posted .

[Bsimhan]

Originally Posted by ajmat

Believe me, the showroom and the service centre are totally disconnected.

Agree completely with this statement. I found that some of the technicians in the service centre were aware of the extra charges from their own 'authorised insurer'. The SA will take your car irrespective of insurance company.
Regards, balaji

[rkw]

Originally Posted by Artyom

Appreciate the forum's help.

Seems like a gimmick by the Sales team. As indicated by other members, Sales is not connected with service or claim related matters. If the insurance you are planning to get is offering cashless claim & has tie-up with the service centre of the dealer in question, go ahead without any worries.

[Aviator_guy]

Originally Posted by Artyom

We are planning for a CSUV for my dad who is a senior citizen after selling our 13-year-old Honda City which served us well.
After a lot of searching and understanding the requirements, we have finalized the Venue (DCT) SX+ Version.
The vehicle has to be purchased in Punjab and we have already enquired with the Hyundai dealers for the same and they are ready to accept the order.

As far as insurance is concerned their quote (Hyundai Assurance Program) is way higher when compared to Insurance companies outside.
I told them that the Insurance will be bought from outside unless they are ready to match the figures in which case I will buy it from them.
The dealer cannot match the price and is Ok with us buying it from outside BUT has put a clause forward ie

1. In case of a claim they will not be clearing Cashless claims for us. Repairs will be billed to us by the service center and then we will have to get them claimed from the Insurance agency.

2. Dealer claims that when it comes to cashless claim settlement with the Insurance company it takes them ages and that causes them inconvenience so they don't entertain outside cashless claims.

The response I had for was:-

1. When the Insurance company website itself states their service station as the Authorised service center how can they reject a cashless claim->No response received from Dealer
2. Upon arguing that end of the day it will be some or the other Insurance company who will settle the claim what difference does it make if the Insurance is bought through them or offline.->No response received from Dealer


The dealer is hellbent that we have to buy the insurance through them if we want a cashless settlement through them OR we have to pay the damages upfront and then get it settled with the Insurance company ourselves. It's like they are outrightly rejecting the claim just because it's not through them.

Now even for a second if we go ahead with the Insurance through the dealer during the renewal next year the same point will be put forward and we have to end up shelling more money.

I can't digest the fact that a service center that is authorized by an Insurance company can outrightly reject the claims. I don't want my dad to run pole to post to get a claim approved at this age. Period.

I have never heard something like this and even when I bought my vehicle 2 years back this was the least of my concern and the dealer was fine with it.

Is there a need for a complaint I should raise against the dealer to Hyundai or the Insurance company to get it sorted?

Appreciate the forum's help.

I am in the same situation with Hyundai dealer for my Creta delivery. He is unable to negotiate and I am buying from outside. Do not fall for their tricks of cashless claim is not possible with other insurers. There are few things to keep in mind
1. Try to stick to top insurers like HDFC ERGO, ICICI Lombard, Bajaj Allianz. Their quote will be higher (but obviously some savings over dealer quote) but claim settlement and service is much better.
2. Stay away from dirt cheap insurance quotes from lesser known companies as they make money later by rejecting claim for silly reasons.
3. Dealer quote is high due to fat commission and Hyundai Assurance Program. So some premium is justified but it should not be exorbitant. Some dealers do offer discount but it is up to them. For fast moving models and if they feel customer is in a hurry and not familiar with outside insurance then they try to force it.

In some cases when you make a claim, it may take a day or two extra to process the claim or start the work on your car but that's something should be acceptable if the savings is big. Nothing is free but as long as you stick to decent insurance companies with good track record and cashless tie-up with your preferred service center, you will be ok.

[Artyom]

I am trying to negotiate the Insurance premium with the dealer and now I am waiting for his response and then decide .If the difference is nominal ill go with the dealer else with an Insurance provider outside.Today being a Sunday there is no response so lets see what happens tommorow.Ill keep the forum posted.
I bought from Trident Hyundai and they were ok with me buying insurance from outside but in my dads case they are causing un necessary problems.

[Aviator_guy]

Originally Posted by Artyom

I am trying to negotiate the Insurance premium with the dealer and now I am waiting for his response and then decide .If the difference is nominal ill go with the dealer else with an Insurance provider outside.Today being a Sunday there is no response so lets see what happens tommorow.Ill keep the forum posted.
I bought from Trident Hyundai and they were ok with me buying insurance from outside but in my dads case they are causing un necessary problems.

If dealer is unable to match and willing to accept outside insurance (which should be the case), do not feel pressurized and over stressed by his timelines to hurry. Buying outside insurance from online is just a matter of minutes ( once you know which company and coverage you are looking for). In fact, if you have engine and chassis number then you can obtain quotes today itself and then decide accordingly tomorrow once dealer reverts.

[dhanushmenon]

I have faced similar experience in the past. This was not when I was buying the new car, but when I was about to renew my existing insurance. I got it clarified through an email from the insurance provider and Mahindra (in my case). I kept a copy of the email with me as proof that both parties have agreed and went ahead to buy the insurance of my choice.

Just keep in mind that not all companies have cash less tie ups with the service centre. So, just make sure that you get the insurance of a company that has an existing tie up. You will note that inline insurance of the same company with same IDV and NCB would be much cheaper than the one being sold through the dealership.

[Voodooblaster]

Here's why the dealer insists that a customer takes insurance through them

Dealers stand to gain a neat amount as insurance commission.

15 to 17.5% of the own damage premium is normally taken as commission by the dealer

2.5% is the commission for the broker. (Market leader Maruti has its own brokerage firm)

This is in addition to various underhanded payments Insurance Companies (mostly the pvt sector) make to dealers and brokers

Now let's come to the cashless claim settlement

When insurance is taken through the dealer (tie up insurance), they have a certain leverage with the insurance company to settle claims faster. The same can't be said when we take insurance from outside (non tie up insurance)

Even if dealer allows cashless settlement for non tie up insurance, they will normally release vehicle only after the insurance company makes the payment and provides proof. Difference of claim amount and bill amount , and deductibles will of course have to be borne by customer.

Most dealers have a fixed time within which invoices have to be settled (normally 7 working days). If insurance company settlement takes longer, customer will have to bear penal interest/demurrage

It doesn't really matter

As many member have rightly pointed out, service centres and showroom operations are very rarely connected. When there are multiple service centres with stiff competition among them, the workshops normally allow cashless facility (as it's still an income source for them ) and often waive the demurrage

Hope this helps

[electro-monk]

In my experience with outside insurance with Reliance General, the process for claim was cashless & extremely smooth (I made 2 claims that year).
So much so that I felt like kicking myself for not moving to outside insurers earlier.
I guess the service center has incentives to pressurize the insurance surveyors to approve claims smoothly as body shop repairs have huge margins - which means it is not your headache to chase them.

On an unrelated note, I have recently learnt that Hyundai dealers in bangalore also play with the waiting period in lieu of getting outside insurance (~4 months vs 2 month).

[Artyom]

Based upon all the suggestions I guess I have a lot of ammo to take the dealer head-on. Tomorrow I will go guns blazing and will try to get it sorted and bring the dealer to change his tone.

[Aviator_guy]

Originally Posted by Artyom

Based upon all the suggestions I guess I have a lot of ammo to take the dealer head-on. Tomorrow I will go guns blazing and will try to get it sorted and bring the dealer to change his tone.

Another ammo you have is one of the facts about car on company lease. There are many people who buy car on company lease where the insurance is paid by the employer through their own tie-up. Dealer has no say in that. Leasing companies just get invoice from dealer for EX showroom price and rest everything is handled by employer and leasing company. So how is this possible if insurance is mandatory by dealer, right? So in the end, it is all pressure tactics to extract as much margin as possible. If he is guaranteeing early delivery (for example) then may be you can consider.