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Old 23rd September 2021, 16:29   #1
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Default Dealer refusing Cashless Claim if insurance isn't bought from them

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.
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Old 23rd September 2021, 16:33   #2
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Default re: Dealer refusing Cashless Claim if insurance isn't bought from them

Both the company and the dealer stand to benefit from a fat commission from the Insurance company therefore the premium is higher...
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Old 23rd September 2021, 16:45   #3
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Default re: Dealer refusing Cashless Claim if insurance isn't bought from them

Quote:
Originally Posted by Artyom View Post
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.
My suggestion is that, do not break too much sweat over these kinds of blackmailing dialogues from the dealership.

Go ahead, take the insurance of your liking.
Just avoid the ultra cheap insurance companies.

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).
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Old 23rd September 2021, 16:48   #4
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Default re: Dealer refusing Cashless Claim if insurance isn't bought from them

Please draft a mail and send it to both HMIL and that particular insurance company, wait for their reply and do update us here.

You can also tag HMIL & that insurance company on Twitter with this thread's link. Let us know the end result.

Thanks .
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Old 23rd September 2021, 16:50   #5
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Default re: Dealer refusing Cashless Claim if insurance isn't bought from them

Even easier would be to just take the car to a different dealership in case an insurance claim is needed in near future.
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Old 23rd September 2021, 17:01   #6
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Default re: Dealer refusing Cashless Claim if insurance isn't bought from them

Believe me, the showroom and the service centre are totally disconnected. Check with the insurance provider whether they have a cashless tie up with any HMIL near you. In the event of an accident. You fill a standard claim form. Clip the policy copy to it and the surveyor collects it from the repair.

Call the salesman’s bluff!
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Old 23rd September 2021, 17:14   #7
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Default re: Dealer refusing Cashless Claim if insurance isn't bought from them

Quote:
Originally Posted by Durango Dude View Post
Both the company and the dealer stand to benefit from a fat commission from the Insurance company therefore the premium is higher...
It didn't happen when I bought my car in 19. The dealer was chill and didn't even push me to buy the insurance from them. Looks like the dealer is getting greedy.

Quote:
Originally Posted by abhishek46 View Post
My suggestion is that, do not break too much sweat over these kinds of blackmailing dialogues from the dealership.

Go ahead, take the insurance of your liking.
Just avoid the ultra cheap insurance companies.

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).
I am planning for Tata AIG

Quote:
Originally Posted by Sheel View Post
Please draft a mail and send it to both HMIL and that particular insurance company, wait for their reply, and do update us here.

You can also tag HMIL & that insurance company on Twitter with this thread's link. Let us know the end result.

Thanks.
Is there a specific email address where to send it or the one showing on google will do?

Quote:
Originally Posted by AtheK View Post
Even easier would be to just take the car to a different dealership in case an insurance claim is needed in near future.
Both the centers are singing the same tone.

Quote:
Originally Posted by ajmat View Post
Believe me, the showroom and the service centre are totally disconnected. Check with the insurance provider whether they have a cashless tie up with any HMIL near you. In the event of an accident. You fill a standard claim form. Clip the policy copy to it and the surveyor collects it from the repair.

Call the salesmanís bluff!
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.
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Old 23rd September 2021, 17:38   #8
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Default re: Dealer refusing Cashless Claim if insurance isn't bought from them

Seems like everyone has joined the G-reed Wagon.

While renewing our insurance the insurance guy himself recommended going to a particular MASS for claims instead of the dealer because of significantly shorter turn around times and lesser hassles.

And that particular MASS is the most competent and economical in the city.

Quote:
Originally Posted by Artyom View Post
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.
Sounds like the best option.

Last edited by shancz : 23rd September 2021 at 17:41. Reason: added tl
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Old 24th September 2021, 09:31   #9
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Default Re: Dealer refusing Cashless Claim if insurance isn't bought from them

In my opinion
1 This is just a gimmick to force you towards dealers insurance
2 Leave the sales team and check with their service center/insurance claim team without telling them that you are buying a new car here.
3 Once you say that this doesn't bother you and you are going ahead with the insurance from outside, they ll come back saying ok we can match the quotation too.
4 Even if they don't , you are at no loss. If the insurance company mentions cashless on papers, it is their and service center's headache later.
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Old 24th September 2021, 09:51   #10
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Default Re: Dealer refusing Cashless Claim if insurance isn't bought from them

Quote:
Originally Posted by Artyom View Post

Appreciate the forum's help.
A big manner in which the forum also helps (on a side aspect) is the publicity and the no. of eyeballs it gets, especially from the automobile brand (Hyundai/HMIL) as well as the dealer.

A few suggestions
1. Report your thread post to add dealer name and 'Hyundai' to your thread name itself, and the first post content.
2. Refer / share link to this thread to whatever communication you send out. Hyundai (and for that matter every other brand) knows the value of a thread out here that calls out their name in a negative context.

As for the original question, 100% go for your choice of insurance (TATA AIG). Do a confirmation check with TATA AIG (instead of the dealer's service center) would validate if they provide cashless service at that location. Tata AIG would be able to confirm it on email and that's all you need. When the situation comes (for a claim), no dealer is going to say no to you - they make a good chunk of their profits from such insurance repair work too.
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Old 24th September 2021, 10:24   #11
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Default Re: Dealer refusing Cashless Claim if insurance isn't bought from them

Quote:
Originally Posted by Artyom View Post
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.
.
In this case, call Hyundai helpline and ask them about approved insurance providers. If the insurance you buy is from one of the approved insurance provider , there will be no issues at all.

In some scenarios, you may have to call insurance helpline and register claims yourself. No other insurance related issues if insurance company is approved and workshop is listed for cashless claims.
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Old 24th September 2021, 12:34   #12
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Default Re: Dealer refusing Cashless Claim if insurance isn't bought from them

In some cases where dealer and service center are tightly coupled (Toyota) the service center desk also tells you to buy insurance from the dealer. I have experienced this myself and there is premium difference for sure as everyone pointed out.

I follow them as the claims are not only seamless but the fine print lies within approved amount of claim sometimes I have seen between providers there are differences of smaller components not making it to approval and gets passed on to the claimant.

While buying new car if this situation arises I would say instead of cash discount bargain on accessories in return, will get you best of both worlds.

And I would not prefer TATA AIG, they do not like renewing insurance if there are lot of claims, from my personal experience.
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Old 24th September 2021, 15:32   #13
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Default Re: Dealer refusing Cashless Claim if insurance isn't bought from them

Do you foresee the car getting accidentally damaged immediately after purchasing it? I believe you're overthinking this and I would advice going for your own insurance of your choice if it saves significant amount in premium outgo.

Dealership usually markup higher premium as they get a higher commission which is payable on the own damage premium only or worst show you a higher premium breakup while selling you the vehicle and provide you a policy copy with a lower premium amount and keeping the balance for themselves.

However, do read the fine print of the terms and conditions carefully like, deductible, zero dep and number of zero dep claims allowed in a financial year etc.

Cashless policy is not a given for all Insurance companies and car dealers. Normally a company allows cashless when they agree to the charges (labor) applied by their dealership for accidental work and painting charges.

This cashless service can be terminated by either party during the year and doesn't mean you will have cashless claim settlement even though you buy the insurance through the dealer.
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Old 24th September 2021, 17:19   #14
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Default Re: Dealer refusing Cashless Claim if insurance isn't bought from them

Go get it outside of your choice. Dealer has no way to stop you from getting it. They will create some crappy situation during the registration for want of receipts, files from the insurance company and blame it squarely on you for getting the insurance. This is the max they can do.

Again, if the difference of amount is less than 5K between the dealer and outside, I would say go with the dealer and have a good sleep.


Quote:
Originally Posted by SnS_12 View Post
Do you foresee the car getting accidentally damaged immediately after purchasing it?
There are instances where insurance had to be claimed even before the car crossed the dealership gates. You never know when you are going to use the insurance.

Last edited by saisree : 24th September 2021 at 17:20.
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Old 24th September 2021, 20:39   #15
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Default Re: Dealer refusing Cashless Claim if insurance isn't bought from them

This is just a ploy by the sales team to force you to buy insurance from them at a significantly marked-up price. I had faced the same issue, albiet during renewal of my 6th year insurance. After the dealer insurance person specifically gave in written similar terms and conditions, a forward to Ford India with a hint of escalation to IRDA, with social media publicity, resulted in a superfast resolution.
Not only was my outside insurance (SBI General), honoured in toto - for an accident claim, I got a free loaner vehicle for the entire duration of repair.
Call the dealer's bluff or check out another dealer.
Congratulations in advance for your new CSUV.
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