Car insurance cost
channa keshava
(Querist) 26 February 2013
This query is : Resolved
Dear Sir,
I request your kind advice on below.
I have recently bought ‘EON Era+’ from Trident Hyundai, Bangalore. The on road vehicle cost is Rs.398,886.
Cash advance paid 5,000
Second cash payment 76,843
Loan 300,000
Discount/Free:
Insurance(as per list) 12,043
Cash back 5,000
Total 398,886
While taking delivery I paid Rs.3265 for additional insurance cost for Bumper to Bumper. The total insurance amount comes to Rs.15308. They have shown same Rs.15.308 insurance amount in the issued Debit Note that 'REIM - BAJAJ ALLIANZ GIC - SNKSR Rs.15,308.
After taking delivery of car, 3 weeks later I received the insurance certificate from Bharti AXA by post. The premium amount mentioned in the certificate (including additional cost for bumper to bumper) is Rs.10,346.
When I asked the clarification on balance insurance amount of Rs.4962 from Dealer, I received the below e.mail from the car showroom and when I visited them they said same thing. Please advice can I get the refund from them if I approach Consumer Court, or no use.
“”Thank you for your mail and we clarify on your query as follows:
The cost of insurance on your car remains Rs 15308/- (Including add on insurance)and that is the benefit accrued to you. However, we do have long-standing commercial agreements with insurance companies which give us preferential cost benefits. It is on the back of these agreements that we are able to offer substantial benefits to our customers through the various sales schemes. Across all industries and businesses, special sales benefits offered to customers are based on such commercial agreements. In the process, the customer benefits on the sticker price which otherwise he would have paid in whole. Interestingly, there have been occasions wherein insurance companies extended insurance cover on just Rs 1/- !!! This does not mean that a customer will get free insurance and the differential on the sticker rate.
We trust you appreciate our inability to offer any additional cash discount on this.
Assuring you of our best attention always.””
Kiran Kumar
(Expert) 27 February 2013
Seek Clarification from the Insurance Company as well.
In case something illegal is found then proceed as per law.
ajay sethi
(Expert) 27 February 2013
for Rs 5000 going to consumer forum is not worth it .
A. A. JOSE
(Expert) 27 February 2013
Dear Mr.Keshav,
The stand adopted by your Automobile Dealer is unfair and unethical. You have every right to challenge the same irrespective of the amount involved therein. It is not a question of loss to you alone, but this unfair practice might have been adopted by them and other dealers in all cases dealt with by them which ultimately amount to unjust enrichment by the dealers. You may first take up with the Insurance company and if no postive response is received, it is advisable to move the local consumer court after serving requisite legal notices to both the insurance company and the dealer concerned. Perhaps, you may also involve any local consumer association/NGO after drawing their attention to the above incident.
Raj Kumar Makkad
(Expert) 28 February 2013
An unfair trade practice has been done against you by the dealer of the company for which he can be prosecuted and you can also demand compensation with the recovery of loss through District Consumer Disputes Redressal Forum.
