Bhopal: Local automobile dealers are charging double the amount for vehicle insurance compared to what insurance companies charge. The dealers provide insurance cover to customers at the time of purchase of vehicles.
The customers have to pay Rs 25,000 to Rs 48,000 as insurance charge for automobiles, which cost Rs 10 lakh. But insurance companies take Rs 15,000 to Rs 28,000 for same vehicles. Free Press obtained a price list when this reporter visited show rooms posing as a customer. The reporter inquired about four-wheelers costing around Rs 10 lakh.
State road transport department has changed the registration rules. According to new rules, the dealers have authority to do registration of vehicles. The registration of vehicles can’t be done without insurance. Dealers and companies take advantage of this.
This has led to increase in on-road cost of four-wheelers. The on-road cost includes ex-showroom price, insurance cost, registration cost and other charges.
The statement of Bhopal RTO in-charge Sanjay Tiwari was shocking. “Why are customers paying more? They are responsible for this,” he remarked. When told about the change in rules, he said necessary action would be taken if any customer complains.
“The difference in the insured prices will increase as the overall price will increase,” said The New India Insurance Company development officer Umesh Singh Chauhan. The companies had tied up with the dealers and dealers don’t pass on discount to the customers provided by the insurance companies.
The insurance companies provide discount up to 70 percent on insurance money when new vehicles are purchased. “That’s why the customers are charged more by the dealers,” said Sharad Tiwari, insurance officer, Oriental Insurance Company Limited.
