Cashless claims rejected if insurance not bought from dealer

The dealer is adamant that we have to buy the insurance via the Hyundai Assurance Program, if we want a cashless settlement.

BHPian Artyom recently shared this with other enthusiasts.

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 Hyundai 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 i.e.:

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

  • When the Insurance company website itself states their service station as the Authorised service centre how can they reject a cashless claim -> No response received from dealer.
  • 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 hell bent 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 out-rightly 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 centre that is authorized by an Insurance company can out-rightly reject the claims. I don't want my dad to run pillar 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?

Here's what BHPian abhishek46 had to say on the matter:

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).

Here's what BHPian AtheK had to say on the matter:

Even easier would be to just take the car to a different dealership in case an insurance claim is needed in near future.

Here's what BHPian ajmat had to say on the matter:

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!

Here's what BHPian RaSing had to say on the matter:

In my opinion:

  • This is just a gimmick to force you towards dealers insurance
  • Leave the sales team and check with their service center/insurance claim team without telling them that you are buying a new car here.
  • 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.
  • 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.

Check out BHPian comments for more insights and information.

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