MVIA cruelty

I took my car to the service center. MVIA refused to pay for the quotation that was send in by the service center. On further enquiry I was told by MVIA that I first need to pay a penalty fee of about R4200, because I never canceled my previous service plan I had with them. Where they not supposed to inform me regarding the cancelation money before selling me this new service plan? I never had my vehicle service with my new plan and the refuse to refund me.