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. |