Lying about service book to up the sales

I bought a car KIA RIO in july 2013 the reading on the odometer was was 76675 i was told dat my car was done a fully major service with all camp belt and v belt were repaired just being a litterate i believed in a sales person ,it came with a warranty of 2 year dats been offered by equestra insure it came out as a package included in my monthly installements ,now im stucked with a bill off R21000 cause my camp belt failed and caused a damage to some parts of an engine when i call the insure they refer me to the dealer. i am suprised dat how can you cover a warranty of a car dat you dont know its condition when it sold ?