[drmohitg]

Originally Posted by ashlil

Update: Modi Hyundai cancels my booking !!!

Explanation: I had given them a cancellation letter on 18th of September when I had decided to cancel my booking as I had mentioned in the first post. But, after that I had asked them not to cancel and hold onto my letter till advise them. Until this Monday, 28th of September, we were still talking about Insurance and I know that my cancellation letter had not been submitted. But, today I have got my booking amount refunded without me asking for it!

Highly unprofessional but then the industry in India is known for this. The cancellation fiasco sounds nothing but a lack of internal communication between the team and eventually your written request for cancellation got processed.

Mandatory insurance, kits including mud flaps etc are an issue across most dealers when a car is in demand. But usually they back off if you stand your ground. If you like the car, approach a different dealer.

[shivshanker]

I have had a similar experience with another dealer in Thane itself, the cost for for Insurance was shown as Rs 38,xxx/- on the profoma Invoice and in good faith I paid for the full amount.

However, when the vehicle was delivered and the paper work was handed over, I found that the Insurance cover note was for Rs, 22,000/- only.

Similarly, they had charged me 82,000 for the RTO Taxes, whereas the actual RTO Tax Receipt was for Rs, 72,800/-

There was a difference of Rs. 6000/- in the Octroi amount too.

I had to raise hell to get around the differential amount back from the dealer. Luckily for me that paid for a new Set of Alloys.

I guess with Competition and with dwindling margins, Dealers are resorting to Techniques like this to get "Float" money from unsuspecting Customers.

[landcruiser123]

Illegal and unethical no doubt, but I'm not one bit surprised. I don't think they'll have the same conditions on slower moving vehicles like the Verna.

Just a case of new model + excitement + high demand where they don't mind losing a customer. If you lose your spot in the booking queue, there will be 20 more people waiting to sign the cheque. Remember, dealers make big bucks in selling extras like insurance, financing, and accessories. If you like the Creta, go to another dealer or try to involve the insurance ombudsman as locusjag suggested.

[ashlil]

Originally Posted by drmohitg

Highly unprofessional but then the industry in India is known for this. The cancellation fiasco sounds nothing but a lack of internal communication between the team and eventually your written request for cancellation got processed.

Mandatory insurance, kits including mud flaps etc are an issue across most dealers when a car is in demand. But usually they back off if you stand your ground. If you like the car, approach a different dealer.

I was told that the cancellation process takes 2 to 3 weeks. On Monday (28-SEP-2020), I was told that my cancellation request has not been submitted. On Wednesday (30-SEP-2020), I got my booking amount refunded. In two days flat (just after a day of starting this thread). So, I do not think it was lack of internal communication.
Also, the point is not that a dealer indulged in malpractice. Larger point is the pathetic attitude of Hyundai. Hyundai was made aware of the issue and it chose to not do anything for the customer.

Originally Posted by landcruiser123

Illegal and unethical no doubt, but I'm not one bit surprised

Me neither. I expected this from a dealer. But, what surprises, saddens and angers me is that Hyundai refused to anything at all.

[drmohitg]

Originally Posted by ashlil

Also, the point is not that a dealer indulged in malpractice. Larger point is the pathetic attitude of Hyundai. Hyundai was made aware of the issue and it chose to not do anything for the customer.

I completely hear you. To be honest, apart from Maruti and Toyota, rest of the car makers are not really that strict with their dealers. This observation is simply based on the various member experiences posted on the forum over the years. And the sentiment is reflected in the kind of faith customers put in these 2 brands.

[whitecloud]

I had bought a creta 1.6 diesel in Oct 2019 and faced the following issues which seem to be pretty common these days with hyundai :
1) Quote was not on letter head but plain paper
2) Insurance could be bought only from hyundai dealer
3 ) Handling charges and compulsory kit of Rs 6700 in total were also included to be charged .

Now at that time , hyundai were offering a flat Rs 50000/- discount on the 1.6 diesel model .I had decided to exchange my old swift dezire vxi and the price being offered was Rs 150000/- and an exchange bonus of Rs 30000/- was also offered to me .I requested the marketing guys for waiving off the handling charges and allow insurance from my own sources. to get the booking .But their seniors including the General Manager didnot agree .

I the end I finally asked that my vehicle price be raised to Rs 175000 with Rs 30k extra for exchange .After much of wait for 3 hours and even to the extent of myself thinking of letting go the Creta and also haggling with me ,the marketing team raised my vehicle price to Rs 165000/- .The hyundai dealers are the worst in offering discounts.I would say that moral of the story is that sometimes ,it is difficult to get direct discount but indirectly one could give a try .

Before buying the creta ,I had test driven Mahindra Xuv 300 as well .It was on waiting .Fortunately, one of my uncle knew the dealer personally and the latter offered a discount of 70% on the insurance quote.Guess ,all the dealerships seem to be making a killing on new car insurance .

Another point is that it is nearly one year and my vehicle insurance is due but the dealers are not sending any quotes for the same as the margins seem to be very less for older cars.

[rkw]

I guess this is a common practice across dealerships. As new vehicle margins are thin, they try to profit from insurance, registration, accessories, detailing etc. But I don't think they insist. Instead it is more of persuasion. They try to take advantage of either ignorant or less concerned customers. But if one counters, they normally fall in line. While getting my Creta 1.5 years back, insurance quoted seemed very high to me. I searched for online offers & told them that I will purchase insurance from outside to which they agreed. After some internal discussion, they offered to match the online price which was about 30% lower.
It is also surprising to hear negative reviews about Hyundai Customer care as that has been one of their strong points in having a large market share over years.

[prabhu.reddy92]

When I bought my Elite i20 in 2019, the same issue happened where dealer was forcing me to get my car insured from them and Hyundai has something called HYUNDAI ASSURED INSURANCE by CHOLA MS.

This is not my first car nor I am new to these dealers trying to sell the insurances but I got a good deal for the insurance and when compared to other insurances I found it valuable and when renewing it in 2020 the price is at par with other insurances and even less when compared to HDFC ERGO while the features and benefits of CHOLA MS is good so I just blindly went again for it.

I claimed two times in the first year for the front and rear bumper replacement and painting and it was hassle free and I got fast and excellent support from CHOLA MS and so i would stick to it every year.

[ashlil]

Finally some traction. Modi Hyundai Insurance head called me up today and tried to understand my problem. After I explained to him the problem, he asked for a chance to put everything right. I explained to him that they have already cancelled my booking. But, I asked him to send an email to his employees informing them that forcing customers to buy insurance from the dealer is illegal and put me in cc. I said that will make me happy and I am not after any discount or such things. He said he will get back to me.

[greendream]

Originally Posted by ashlil

Finally some traction. Modi Hyundai Insurance head called me up today and tried to understand my problem. After I explained to him the problem, he asked for a chance to put everything right. I explained to him that they have already cancelled my booking. But, I asked him to send an email to his employees informing them that forcing customers to buy insurance from the dealer is illegal and put me in cc.

Do you seriously think they shall send such an email to their employees?
In the first place it is the management which directs the employees to force their own insurance on the customers.
The fact that they asked you for a chance to put things right is by itself a victory to you.

I understand that by now you are seriously disappointed with Hyundai. I would say forget all that has happened and enjoy your new Hyundai. The more you think of the unprofessionalism of the dealer and Hyundai, the less happy your car experience will be.

You have done your bit in making people aware of what is happening.

Your rights are intact now. I don’t see Hyundai or the dealer doing anything more in terms of giving you an apology or mending their ways.

I think it’s time to move on. You might find my opinion too candid.I don’t mean to offend you.

[ashlil]

Originally Posted by greendream

Do you seriously think they shall send such an email to their employees?

No. I don't.

Originally Posted by greendream

The fact that they asked you for a chance to put things right is by itself a victory to you.

There is no victory here. I have already been defeated by Hyundai's gross indifference. In any case, getting one's due should not be a victory.

I am quite aware that I am too insignificant and powerless to change the ways of a corporation. But, it cannot be an excuse for not trying. People must be made aware of Hyundai's attitude towards its customers. If enough people face this issue, then maybe the corporation will listen.

[lone_wanderer01]

I'm sorry you had to go through this. I had to go through a similar issue a few months back, but with the Hyundai dealer in Trivandrum (Pothens Hyundai). They kept the car with them for a few weeks until the issue was sorted out. I managed to get the price of the insurance reduced from 55k to around 30k, but that was after a lot of back and forth. They said Hyundai is forcing them to get insurance through the dealer. I called their bluff and threatened to escalate, which is when they decided to get the final quote in the ball park that I was expecting the premiums to be. I'm planning to get the Hyundai i20 when it releases as a second car, but I know I wont be dealing with them again!

[GTO]

Thanks to Sunny for sending this information in. Heartfelt gratitude for sharing it with other enthusiasts via this Team-BHP page!

http://ecoi.co.in/ombudsman.html

Please ask him to try & go to the Santacruz office or try calling them. They are helpful and I’ve had a good experience. Tell him not to give up.

[pandatrooper]

Originally Posted by JithinR

Maybe you can try contacting IRDAI. I think they had released a circular terming this practise illegal (though I am not able to find that particular one).

I faced the same issue while I was trying to book Creta from one of the dealerships in my city last week. Even I couldn't find a circular terming the practice illegal but I was able to scavenge the IRDAI Guidelines on Motor Insurance Service Provider and extract the information pertaining to the aforementioned issue.

As per the 11(b),11 (c),11(k),11(m) of Guidelines on Motor Insurance Service Provider Chapter III Code of Conduct of MISP issued by IRDAI states and I quote :

Every MISP shall not:-
(b) force the prospect/ policyholder to necessarily buy a motor insurance policy through a particular insurance intermediary or insurer;
(c) deny the prospect his rights and options to seek motor insurance policy or renewal of motor insurance policy from any insurer or insurance intermediary;
(k) conduct its business in a manner prejudicial to the interests of the policyholders;
(m) indulge in unfair trade practices;

As per law, the dealerships are defaulting to comply with Section 34 of the Insurance Act, 1938, and Section 14 of the IRDA Act, 1999.

I've sent across an email to IRDAI [ complaints@irdai.gov.in ] and Competition Commission of India [ secy@cci.gov.in ] highlighting the facts and the unethical practices being carried out by the dealerships. I did not get a response yet [ I don't have any expectation to get an immediate reply from the bureaucracy either ]. As suggested in the thread, I guess I'll try my luck with the Ombudsman as well.

You can find the IRDAI Guidelines on Motor Insurance Service Provider here. I hope fellow BHPians and citizens can use this circular to justify their stand

P.S - I'm not a lawyer by profession. If there are any lawyers in the house, please don't hesitate to correct me if I quoted anything that might be wrong. Cheers !

[gagan.84]

I am trying to book Creta SX-IVT and facing the same challenge. The pitch given by sales guys is, Hyundai Assured insurance will be cashless and I won't get this benefit if I go for other insurance. Is this true??