Is Dealer Forcing to Buy Car Insurance before Delivering in Car. Know Consumer Rights
29 January 2023 by Gagan Modi
Is your Car Dealer Forcing you to Buy Insurance from him before Delivering in New Car. Know Consumer Rights
Car Insurance - Dealer Showroom or online
Buying a Car is matter of Pride, Joy and Prosperity - especially in India - wherein the density is still under 20 People per Thousand
Been a Car is considered Second Most Priced Asset - (after Home) - bought by a consumer in his life - the sense of Feel and Sensitivity levels are much higher and a lot more time is been spent by consumer in checking:- Reviews, Requirement, Features, Competition Models - before making an Informed Purchase
However - this all Sensitivity and Feel Good Factor suddenly goes for a toss - when a dealer start imposing conditions - Choosing Car Loan from his Preferred Banker or Choosing Car Insurance through Dealership and states that he can not deliver car if customer do not follow same.
Consumer Rights on Car Insurance
Know Consumer rights on Car Insurance when a Dealer Starts Imposing Same
Consumer Rights
» First and Foremost - A Consumer can buy Car Insurance Policy through any Insurance company / Agent / Policy Type (3rd Part / Comprehensive / Zero Dep Policy) of his choice and has no compulsion to buy it through your vehicle dealer - There can not be a Pre-condition of Insurance in any or either way linked with Motor Vehicle Delivery (unless scheme of Free Insurance running).
» Ask for information about add-on covers, Fill up Proposal Form, Read on Terms and Conditions and even keep a Photocopy of Signed Proposal Form before Submitting for Insurance Policy Issuance
» No Manufacturer has given a Mandate to Dealer to deliver in car only when Insurance taken from his Dealership (Unless - there is Free Insurance Scheme - where in offer Valid when Insurance taken from Select preferred Partner Insurance Players as per Terms and Conditions of Scheme laid down by Dealer or Manufacturer)
Action when Dealer Force in to Cross Sell Car Insurance with Dealer
- If a Dealer Attempt to Smart Play by Forcing in to Buying Insurance or Linking that Delivery would be done only when Insurance taken from him - Immediate catch him red hand by acting as an Informed Customer of your rights and in case of any denial Contact Customer Care of Manufacturer by Sending a Email and / or Registering complaint on Call Center along with filing a complaint in written Email with Dealership too
- You also have a right to report Malpractice by Loding Complaint with IRDA on Toll Free Number 1800 4254 732 and / or sending e-mail to complaints@irda.gov.in. Do not miss to forwward in Dealer and Manufacturer in loop
- There is National Consumer Helpline - 1800 11 4400 - which is also there to Lodge in Complaint - providing Right to be Informed, Right to Choose and even Right to Seek Redressal by filing in Consumer Complaint - if the dealership seems using MalPractice.
Consumer Right
In no way can a dealer force in to buy Insurance Policy as a Pre condition of Delivery of Car. There are many Support Center - from Manufacturer / IRDA / National Consumer Helpline to which the complaint can be forwarded to take Necessary Action against Dealership
You may also Lodge in Complant at MyCarHelpline Forum - been accessed over 1 Million Times in a month to create a Wider Mass Knowledge of this Practice from Dealership