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Endorsement in Car Insurance

Endorsement in Car Insurance

May 18, 2023

Car insurance is one of the most important investments that you might make. It provides protection against unexpected expenses that may arise from accidents, thefts, or other damages to the vehicle.

When you purchase car insurance, you are required to fill out forms and provide the required details to the insurance company. It is important that you give accurate details. If you don’t, this may cause hassles during the claims process.

To make sure you don’t encounter such scenarios, insurance companies give you the option of altering these incorrect details, including/changing any accessories, etc. In this article, we will take a closer look at endorsements and how they work.

What is Endorsement in Car Insurance?

An endorsement helps you make necessary changes to your car insurance policy after it is issued to you. Whether you need to add, remove, or modify any terms, endorsements ensure that your policy details are always up-to-date. By keeping your policy details accurate, you can avoid problems during the claim process and ensure that you receive the coverage you need.

For instance, if you want to add any new accessories to your policy, an endorsement needs to be made to your policy to reflect these changes. This helps you avoid any discrepancies in the event of a claim. Additionally, any misspellings or misprints in your policy document can also be changed through endorsement.

For example, Harish recently purchased car insurance for his brand-new vehicle. However, a few weeks later, he realised that his surname was misprinted. The insurance provider informed him that an endorsement could be made to rectify the error. Harish’s policy details were corrected.

The Importance Of Endorsement

It is crucial to notify your insurer of any errors or modifications in your car insurance policy to avoid any complications during the claims process. This is because a discrepancy in your name, the cubic capacity of the vehicle, and other such details can cause problems during claims, and the insurer may even refuse to settle the claim.

For instance, if you have recently modified your car’s features, it is important to update the same in your car insurance policy. Failure to do so could result in delays or denials of claims in the future.

If you are uncertain about whether to initiate an endorsement for the changes required, it is recommended to consult your insurer and let them decide whether it is necessary or not.

Types of Endorsement in Car Insurance

There are majorly three types of endorsements -

1️⃣Nil Endorsement

These types of endorsements do not affect the premium of the policy and may include updating personal information like misspelt names, changing contact numbers and addresses, correcting the vehicle number, etc. You will receive the updated policy document instantly.

2️⃣Premium Endorsement

These endorsements will affect the amount you pay for your insurance coverage. For instance, correcting the no-claim bonus, adding any paid covers, etc. The turnaround time for premium endorsement is 48 hours.

For example, Riyaz is a car enthusiast and likes modifying his vehicle. He changes the colour of his car to jet black from navy blue. He will have to get this changed in his registration document as well as his car insurance policy document.

To do so, he will have to -

●Raise a request with the RTA to make the change in his Vehicle Registration Copy.
●Once that is done he will have to make a request to his insurance company for an endorsement. He will have to send the new registration copy as well to the insurer for making the correction.
While premium endorsements can be made with ease, it is important to review and understand the costs associated with any changes you make. By doing so, you can ensure that you have the coverage you need without any unexpected surprises down the road.

3️⃣Cancellation Endorsement

Cancellation Endorsement comes into the picture when your car is declared a total loss and your car insurance is cancelled once you receive the claim amount from the insurer.

What is the Endorsement Process?

Making an endorsement to your car insurance policy can be a relatively simple process, but it is necessary to follow the right steps –

1️⃣Making An Endorsement Request

The first step in making an endorsement is to contact your insurer and raise a request for the change you want to make to your policy. You can do this by calling them, sending an email, or visiting the branch office. You will also need to give them a clear reason why you need to make the change.

2️⃣Submitting the Required Documents

You will need to submit relevant documents to your insurance company. The type of documents required may vary based on the type of change you wish to make to your policy. For instance, making minor changes to your personal details such as your email or phone number may not require any documents. However, if you wish to modify details related to your vehicle, such as its colour or registration number, you will need to submit certain documents.

3️⃣Receiving The Updated Policy Documents

●If you have requested a nil endorsement, you will not have to pay anything and the insurer will give you the updated policy document instantly.
●If you’ve requested a premium endorsement, you will need to make the payments necessitated by the insurer. You will receive the updated policy document within 48 hours.

To conclude,

We have now come to the end of this article and we hope that you have better clarity about endorsement in your car insurance policy. An endorsement will not only ensure that your policy stays up-to-date with the right information but also prevent complications.

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