What is Endorsement in Car Insurance?
Valid car insurance is not just insurance that has not expired but must also contain accurate, up-to-date information. This is important as it enables one to settle the claim easily with minimum trouble.
In order to ensure that the policy term is accurate at all times, one will have to incorporate changes, modifications made to the car during the policy term through an endorsement.
What is an endorsement in insurance?
The endorsement in insurance refers to an addendum in one’s existing policy incorporated due to change, modifications in the policy. It is written evidence of an agreed change, modification to the policy. The credentials of the policy are recorded in detail on this endorsement.
These changes or modifications are usually affected during the operation of the policy. An endorsement can be issued at the time of purchase, mid-term or during the renewal period. The process is simple and requires precision.
What are the possible changes that you may have to make in the policy?
The different kinds of endorsements are highlighted as follows –
A change, modification or correction in the engine number
A change, modification or correction in the chassis number
A change, modification or correction in the Registration Number
A change, modification or correction in your name
A change, modification or correction in your address
A change, modification or correction in your mobile number and or your email id
An inclusion of a CNG or LPG Kit
Including or increasing the voluntary deductible
A change, modification or correction in passengers covered or the seating capacity of your vehicle
A change, modification or correction in your car’s variant
A change, modification or correction in your car’s cubic capacity
A change, modification or correction in the make and model of the car
Any correction in the No Claim Bonus
Any premium mismatch
Change, modification in the details of the nominee
A change, modification or correction in your vehicle's fuel type
A change, modification or correction in the vehicle's year of manufacturing
A change, modification or correction in the Insured Declared Value (IDV) of your vehicle
A transfer of ownership
Any addition or deletion of electrical accessories
Any addition or deletion of zero debt
Some of the documents that the policyholder is required to submit to the car insurance company are shown below –
- Addition of Biofuel - Duly endorsed Registration Certificate copy
- Addition of Cover – Registration Certificate Copy or Invoice Copy in case of New Vehicle
- Changes in Cover – Registration Certificate Copy or Invoice Copy in case of New Vehicle
- Nominee Modification - No documents required
- Transfer of ownership – Registration Certificate and notarised sale deed along with documents that indicate pre-inspection.
What are the steps to make an endorsement in insurance?
The following steps have to be followed while making an endorsement –
- Submit a request letter to the insurance company along with the requisite documents.
- The insurance company will make the changes in the policy document on verifying the correctness of the change or modifications.
- Ensure that all documents submitted have statements that are correct and do not misrepresent any information.
- In case you are in need of a higher premium, then consult the insurer and send a cheque along with the request letter.
Do endorsements have a say in determining your premiums?
Some endorsements have an effect on one’s premium. For example, if the vehicle is upgraded then one might have to pay an additional premium amount.
Say the policyholder has ramped up the power of the engine, then the chances of getting into an accident is greater as the policyholder can drive at a faster pace. On the other hand, if there is a deletion of the accessories of the car then the insurance premium will decrease.
The quantum of reduction or increase is dependent on the policy and the insurance company.
It is prudent to inform the insurer about any change, modifications made to your car at the earliest possible instance as it will have a bearing on the policy cover.
Follow up with the insurance company about the endorsement and make sure that the change, modifications are reflected accurately on your policy document through an endorsement. The value of this will be realised during the time of making the claim.