Hyundai dealer insures car without my consent; How I got it cancelled

I managed to insure my new Creta N Line on my own terms, causing an 18-day delay - but was worth it.

HPian sandman2010 recently shared this with other enthusiasts.

Hello, fellow BHPians!

I had a unique experience with a Modi Hyundai showroom in Mumbai while purchasing the Creta N10 recently. If it helps even one car buyer I would be happy. TLDR version at the end. Just FYI, I have had a Honda Jazz for 14 years and love everything about the car.

The Hyundai TD & sales process till this incident was absolutely fantastic and I chose the Creta N-Line N10 variant.

I paid the 25k booking amount and on the insistence of the SA paid 50k more (it would be clocked in his name before March closing and I also fell for the promise of the vehicle being delivered in 10 days). Here is where the plot thickens.

1. The dealership added the insurance in the booking form, which I asked them to remove as I wanted to check options. SA insisted he just needs to add it to his system. He also asked for any quotes I have received which I shared on WhatsApp.

2. The dealership went ahead and bought insurance in my name without me having any say in the policy, company or terms. I came to know of it only when Tata started sending me SMS & WhatsApp messages. The SA was unapologetic about the purchase & insisted that it was a good policy. I informed him I won't accept this as a matter of principle. Was invited to the showroom to discuss this further, stating he had informed that he was going to "retail" the vehicle in his system. Apparently, this means they have to book insurance or whatever...I told him I didn't care for their internal terminology, and that this was very close to fraud.

3. I then called up the insurance firm to inform them I didn't book this. They put their hands up and said all processes had been followed by the dealer. The "seniors" I talked to had no answer to my query on liability if something happens to the vehicle now as it isn't registered to anyone. They flatly refused to cancel the policy in my name unless I produce a letter from the dealer stating that they missold (really?) or cancellation is initiated by the dealer for which there would be a penalty. Would be keen to hear from any experts on the legality of booking insurance without a registration number... just a chassis number?

4. The visit to the dealership was a predictable affair. SA and his Team Leader started defending the purchase and asked me for proof when I said I had requested multiple times for the removal of the insurance. This debate was settled when I showed multiple WhatsApp messages where I asked SA to remove the insurance part from the digital docket given post-booking. This triggered a blaming exercise on the individual. I refused to accept this as it was clear from his demeanour he had full approval from his management. There were also scare tactics of penalties, missing date of delivery etc. I told them in that case I would like a refund as I would be cancelling the booking. By this time the car had already got into the stockyard at Bhiwandi and the dealer team was really in a fix. I walked out of the dealership with the ball firmly in their court, to either cancel insurance or booking.

5. Now the sales team (dealership GM) started offering me accessories up to 15,000 & talking about how good the insurance policy was. I refused to budge. I was polite but told him that it's a matter of principle & I can't condone this behaviour from his sales team. The GM was apologetic. Apparently, it cost the dealer 7k which the SA had the audacity to ask if I could share 50%, which got me riled up, forcing the GM to get involved.

6. By this time two delivery dates had been missed because they had to undergo some approval process and I also was busy with work.

7. I then got a call from the CEO of the dealership. He had to sign on the cost of cancellation and wanted to know why I was upset. I gave him my version of events (apparently the dealership had given a very different picture of the same). To his credit, he heard me out & quickly apologized and gave me 2 options:

• Option A: Go with the current policy & Modi Hyundai will give me a letter stating all things over and above the policy will be covered by the dealership, in any unforeseen events. Along with this any accessories I like worth 15,000.
• Option B: Cancel the insurance and I pay the down payment and get the car. Insurance choice would be up to me, from wherever I see fit.

I chose Option B, as I felt like I needed to stick to my stand and the Sales team needed to know they were in the wrong.

8. After this the sales team started enquiring about the down payment, but I told them I wouldn't pay anything till the insurance company sends me a cancellation message or when I find the policy number invalid when I query their chatbot. Took a few days but the policy number got invalid.

9. After this it was quite smooth, obviously as I had the ear of the GM/CEO. I got the dealership to book the same policy from the same insurer but with changes in terms/inclusions. Loan through SBI was also seamless. Delay of 18 days but I was fine with it.

TLDR version: Hyundai dealership bought Insurance in my name even before registration & without my consent. Got it cancelled and only then paid the down payment. Bought it on my own terms. All this was done without wasting my time on fights, just followed the escalation matrix & stuck to my guns without falling for freebies.

Here's what GTO had to say on the matter:

Glad you stood your ground, thanks for sharing! Car dealerships are notorious for such practices. But I really worry about the uninformed regular Joe who is taken for a ride by such dealers.

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