3 Things You Should Know About Endorsements in Car Insurance Policy

Got a new car and with it a new insurance policy, congratulations! But a few days later you realise that your car insurance policy has an error!

What next? Do you need to buy a new insurance policy all over again? Will your premium go waste?

Hold on! Nothing is wasted. All you have to do is simply file for an endorsement to your existing car insurance policy.

But what is an endorsement?

An endorsement is any change that needs to be informed to the insurance company. In the above scenario, any discrepancy that is required to be changed takes the form of endorsement. However, any changes related to variance are not the only that can be addressed via an endorsement.

1.    What are the different types of endorsements that can be requested by a policyholder?

Changes in the following fields in your insurance policy can be made using the endorsement facility –

  • Mistakes in the name of the policyholder
  • Change of address
  • Change of contact details
  • Change of nominee to the policy
  • Incorrect registration number
  • Error in engine number
  • Incorrect chassis number
  • A discrepancy in voluntary deductible of your policy
  • Error in mentioning the variant of your car
  • Error in the model and make of your vehicle
  • Incorrect cubic capacity of your car mentioned on policy
  • Incorrect seating capacity
  • Incorrect year of manufacture
  • Type of fuel
  • Mismatch of premiums
  • Wrong reporting of Insured Declared Value (IDV)
  • Mistakes in No Claim Bonus (NCB)
  • Any transfer of ownership of your car
  • Addition or removal of mortgage to your vehicle

2.    How many times can you request an endorsement?

Most policyholders assume that an endorsement can be made for a maximum once or twice, whereas it is not true. An endorsement can be filed for any number of times during the tenure of your policy. However, this may differ as per the terms and conditions of each policy. a But even after said that, remember filing too many endorsements will not only cause confusion but also errors in updating the records by the insurance company. One must try making fewer endorsements. Making an endorsement before your car insurance renewal will help in getting an updated policy document at renewal date.

3.    What is the process to make an endorsement to your policy?

The endorsement in your car insurance can be done at any time during the policy tenure. The insurer records this change as an additional supplement to your insurance policy is attached stating the details of the endorsement. This supplemented policy document states the amendments in your existing car insurance policy.

Getting an endorsement to your policy is simple. All you need to do is submit a letter of request along with the correct documents or proof of changes. On receipt of the request, the insurer makes the required amendments and sends out a copy of the supplemented endorsement to your insurance policy.

Along with changes to your policy, you can also avail additional cover or change the scope of your policy. These kinds of endorsements can have an impact on your car insurance premiums too. A car insurance calculator facility will come handy to estimate the impact of additional coverage on your policy.

To conclude, any material changes in your car or its ownership that are required to be reported as per regulations should be updated using the endorsement facility. In case you fail to do so, it can result in rejection or delayed claim process.

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