Srinagar, Nov 21 (KNO): Vehicle owners in Kashmir Valley are reportedly facing difficulties at authorized automobile service centres when their cars are insured with government-owned insurance companies.
One such case recently came to light when a vehicle owner, insured under New India Assurance Co. Ltd, approached the Tata Motors authorized service centre in Tengpora Srinagar by Himalayan Motors for routine repairs.
However, according to details accessed by the news agency—Kashmir News Observer (KNO), the owner alleged that the service centre refused to accept his vehicle, citing insurance-related reasons.
“They told me not to bring vehicles insured outside their showroom. Only those insured at their own outlet are entitled to cashless repair services,” the vehicle owner said, adding that despite repeated assurances to clear payments directly with the insurer, the centre remained unwilling to take his car for necessary repairs.
The owner further alleged that such practices have become routine, leaving customers with valid insurance coverage from nationalized companies at a disadvantage.
When contacted, an official from Himalayan Automobiles (Tata Motors Authorized Service Centre) said they only entertain vehicles whose insurance policies are registered with them.
“If a customer’s policy is from outside or with an insurer that doesn’t have a tie-up with us, we cannot offer a cashless facility. We can, however, process the claim through reimbursement. The cashless service is available only for those insured under Tata Motors Insurance (TMI) policies or companies with which we have an active tie-up,” the official said.
Vishesh Paul Mahajan, Transport Commissioner J&K, told KNO that he has raised the issue and forwarded the details to the RTO Kashmir for examination.
Meanwhile, the RTO Kashmir was not available for comment.
Similarly, under India’s ‘cashless motor insurance’ system, the insurance company directly settles the repair bill with its approved “network garage.” Vehicle owners are not required to pay the full amount upfront, except for standard exclusions such as depreciation, deductibles, or consumables.
The New India Assurance Co. Ltd. (NIACL) lists its cashless “network garages” publicly, where policyholders can claim direct settlement benefits. It also allows claim processing at certain non-tie-up garages through reimbursement.
The Insurance Regulatory and Development Authority of India (IRDAI), in its Guidelines on Motor Insurance Service Providers (MISP), 2017, clearly states: “In offering cashless service, the MISP shall not discriminate between the policyholders who have bought motor insurance policies through it or otherwise, so long as the insurer is having such an arrangement with it.”
Moreover, it says if a garage or dealership has a tie-up with an insurer like NIACL, it cannot refuse a policyholder’s cashless claim merely because the insurance was not purchased through that showroom—(KNO)