RTO asks auto dealers to allow vehicle owners to choose insurance companies

Surat: Next time, you purchase two-wheelers or cars and are forced to take vehicle insurance by auto dealers from them, then you can complain to regional transport office (RTO) about the issue.

RTO has instructed all automobile dealers to not force their customers to take vehicle insurance from them. Official sources said state transport commissioner has issued orders to RTOs to take action against such auto dealers.

DK Chavda, regional transport officer, said, “We have issued notices to all automobile dealers across the city and district to not force vehicle owners to take vehicle insurance from them. It will be treated as malpractice. In case of complaint by vehicle owners, there is a legal provision to suspend registration of dealers for three months. We have not received any complaint from vehicle owners against the dealers. We want people to be aware of their rights and choose insurance companies that offer best rates.”

Sources said automobile dealers provide a complete package to their customers purchasing two-wheelers and cars, which includes price of vehicle, vehicle tax, insurance, RTO charges and HSRPs. The customers can’t choose insurance companies on their own.

Raju Shah, vice-chairman of road safety committee, a non-government organization, told TOI, “Automobile dealers earn commission from insurance companies and they also charge extra bucks for HSRPs. Customers normally give in to the demand of the dealers. In the past, we had organized many events in the city to spread awareness among people about these corrupt practices by some dealers.”

Source: The Times of India