BMW Dealer selling Edel Assurance extended warranty instead of BRI

They are not selling BMW Extended Warranty anymore due to some ongoing issues and are instead offering Edel Assurance as an alternative

BHPian heartbreakkid recently shared this with other enthusiasts.

So something interesting and equally perplexing. My car (330i MSport) completes 2 years later this month and I was looking to renew my extended warranty so reached out to the dealer, Bavaria Motors for a quote.

He came back to me stating that they are not selling BMW Extended Warranty anymore due to some ongoing issues and are instead offering Edel Assurance as an alternative. He of course tried very hard to convince me that it would be the same or even better levels of service, all work would be done at their (Bavaria) workshop and the same genuine parts would be used.

I pushed him a little further to know what was going on and he said that BMW sent them a notice with a penalty ranging into a few crores alleging that the extended warranty policy that they have been selling for the past few years should have incurred a 48% GST instead of the 18% that they have been charging.

He did not have more details about it, but as of right now since BMW only sells extended warranties through dealers, what are my options here? Edel seems to have decent reviews on their Google listing but the official warranty would still be my preferred option.

Here's what BHPian Turbanator had to say in this matter:

Looks it is indeed correct. Here in the North, most are offering Bajaj.

This is interesting and maybe correct. Per the law, GST on the extended warranties should be the same Percentage as on the product. BMW Dealers have been collecting only 18%. However, since the basic GST on Cars is 28%, rest is cess, I will probably not agree to the 48% claim. If that's the actual demand, it can be argued but even with 28% i.e. 10% difference, the amount will be huge. No wonder, most MNCs have a lot of such demand notices. But this should have been easier to understand by professionals.

You should get the warranty. However, I foresee troubles in due course. As an example, if a shock absorber is damaged and also approved, currently BMW also takes care of other child parts, will such insurance companies also approve such parts? Only time will tell but one thing is certain, the cost of repairs/ warranties will increase even more.

Meanwhile, here is BHPian jfk1975's response:

When I did my 5th year BRI (Extended Warranty) renewal this March, my local BMW Service manager informed me that the BRI coverage is being done through Bajaj Allianz and not through BMW India. However, the coverage would be the same as what I had with the original BRI. I went ahead with it, and I recently had to get an indicator bulb malfunction looked into. They replaced it under BRI issued through Bajaj Allianz. For all intents and purposes, it is pretty much the same coverage and costs, with the main difference being that the policy is now being issued by Bajaj Allianz. Attached are snippets of my policy for your reference. Hope this helps.

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