When I purchased my car last year (my first car), I didn’t bother much to find out the choices available for insurance. The dealer assured me that the deal he is giving me is the best and Royal Sundaram Service is also best.
However, when my insurance came up for renewal, I realised that Royal Sundaram and the Car Dealer (Advaith Hyundai in Bangalore) are indulging in business malpratices and trying to cheat customers.
When the insurance is due for renewal, the insurance company sends a renewal notice to the customer. This renewal notice specifies the premium applicable for the next year and whether the customer is entitled to any "No Claim Bonus".
This renewal notice helps the customer make an informed choice, whether he wants to go with the same insurer or choose a different one. In case, the customer wants to go for a different insurer, this notice helps the customer get a "No Claim Bonus" from the new insurer.
About 2 month prior to the expiry of my car’s insurance, I started receiving calls from Advaith Hyundai asking me to visit their office to renew my car’s insurance. I asked them why I should visit them and why not renew insurance on my own. They told me that if I get the insurance renewed through other agents or other companies, I will not get "No Claim Bonus" (which is 20% of the premium). While I was surprised at this statement, I didn’t give it much importance thinking that anyway the insurance company will send me renewal notice and I will directly go to other insurer to renew the insurance.
When the insurance renewal notice didn’t reach me even 2 weeks before the expiry of the insurance, I called up the Bangalore office of Royal Sundaram. To my surprise, they told me that they will not send the renewal notice to me and will send it to only Advaith Hyundai. When I told them that I have paid for the insurance and I must get a renewal notice, they told me that as per their arrangement with Advaith, only Advaith will get renewal notice and I should ask them directly. When I asked them if they can give me a "No Claim Bonus Certificate", they told me that they don’t have any such practice.
This is clearly a business malpratice. By not sending the customer the Insurance Renewal Notice, Royal Sundaram is trying to ensure that the Customer doesn’t have a choice (or ends up paying a higher premium if he makes a different choice). Advaith Hyundai is also indulging in business malpratice because they have entered into an arrangement with Royal Sundaram whereby the customers are forced to renew their insurance with Advaith as agent.
I had sent complaints to both Royal Sundaram and Advaith but none of them has bothered to send a satisfactory reply to my queries. Just 2 days back (when my insurance is expiring), Royal Sundaram representative has procured a copy of the renewal notice (that was supposed to be sent to me by them) from Advaith Hyundai and sent it to me.I have already renewed my insurance with a government Insurance Provider and have decided never to use the services of Royal Sundaram in my life. These people are taking customers for ride.