Whether you purchase a new or second-hand car, having valid car insurance for your vehicle is mandatory in India. However, even with this mandate, many policyholders might still need to learn about car insurance endorsement meaning and how it works.
While car insurance is a necessary financial safety net to protect your savings and vehicle in unforeseen circumstances, understanding the role and benefits of car insurance with endorsements is crucial for making informed decisions.
With this guide, you can make any necessary endorsement in car insurance with the right information about what it is, how it works, and the process to make endorsements.
What is Endorsement in Car Insurance?
An endorsement in car insurance refers to a request for any changes or amendments to your existing car insurance policy.
These endorsements provide you with a systematic procedure for updating your car insurance policy as and when information regarding yourself, your residence, policy coverage and other changes occur.
An insurer completes all endorsement requests on behalf of the policyholder or insured. In simple words, any addition or removal of information on your existing policy is called an endorsement.
Types of Car Insurance Endorsements
Updating your car insurance with endorsements is necessary to ensure it aligns with your changing coverage requirements and personal information. Moreover, failure to change personal information on your policy document may lead to claim rejections as well.
Thus, to help you stay up-to-date with the types of endorsements applicable to your car insurance policy, check out the list below -
A change or correction in the current address
A change or correction in the car engine number
A change or correction in the car chassis number
A change or correction in the policyholder’s name, mobile number and email address
A change or correction in the car registration number
A change or correction in the car’s model, variant, or make
A change or correction in the details provided for the nominee
A change or correction in the car manufacturing year
A change or correction of the seating capacity of your car
Increasing or reducing voluntary deductibles
Changes to the Insured Declared Value of your car
Adding or removing zero depreciation cover
Transfer of vehicle ownership
Corrections to the No Claim Bonus cover
Adding or removing electrical accessories to your car
Importance of Car Insurance with Endorsements
Coverage Maintenance
One of the most important reasons why you must make use of endorsements in car insurance policies is to maintain the desired coverage throughout the policy tenure. Having the right coverage provides the necessary financial support for your car damages in case of unforeseen circumstances while reducing your out-of-pocket expenses significantly.
Premium Optimisation
Based on the type of endorsement in car insurance, you can customise your premium if and when required to match your vehicle's changing coverage needs. For instance, endorsements like increasing voluntary deductibles or removing unnecessary covers from your
comprehensive car insurance policy can help reduce your monthly premium.
Complete Compliance
In India, having third-party car insurance for your vehicle is mandatory to avoid breaking any traffic laws and hefty fines. However, many different traffic laws require car owners to have correct information on their insurance policy documents to avoid penalties. Thus, optimising car insurance with endorsements allows you to comply with all traffic rules.
Enhanced Car Security
Protecting your car with the right car insurance policy ensures vehicle and financial safety in times of need. By updating your car insurance with the necessary personal and vehicle changes, you can benefit from efficient claim settlements without the added risk of rejections and unexpected delays.
Process to Make an Endorsement in Car Insurance?
Notify Insurer
The first step is to update the insurer about the required changes. You can either do it via their website or by calling their customer support number.
Request the Endorsements
For endorsement request submission, you can either do the same online from the website or write an email to the insurer's email address.
Provide Supporting Documents
Once done, you will also need to submit the necessary documents to support the endorsement request you have raised. For example, if you want a name change endorsement in car insurance, you will have to submit proof of the name via an Aadhaar card, PAN card, etc., along with the request.
Get Policy Updated
Wait for endorsement verification, collect the endorsement certificate, and receive your updated policy document via email.
Other Necessary Information on Car Insurance with Endorsements
Validity of Car Insurance with Endorsements
For any car insurance policy, the validity of an endorsement in car insurance remains the same as the policy tenure. However, at the time of policy renewal, you can make further changes as per coverage needs or information updates by requesting additional endorsements for the next policy year.
Permitted Frequency of Endorsement in Car Insurance
There is no fixed limit to the number of endorsements you can make in your car insurance policy as it is dependent on the frequency of changing needs and information. However, it is necessary to understand that multiple minor endorsements from time to time can increase your expenses.
Buy Car Insurance from Reliance General Insurance
Securing your car with the appropriate car insurance policy allows you to benefit from a financial safety net during unforeseen circumstances and assures increased peace of mind.
A third-party car insurance policy is mandatory if you want to take your car anywhere in India. However, the coverage under this policy is limited to damages incurred by third parties and their properties.
Reliance General Insurance offers a wide range of
car insurance plans to cater to the specific needs of varying needs of vehicle owners. In addition, we provide ample customisation flexibility and online convenience for policy purchases, renewals, and claims.
For your car’s safety, you must explore different policies and
compare car insurance plans based on the policy inclusions and terms to find the one that best aligns with your requirements and budget.
Conclusion
Understanding the role and importance of timely endorsements in car insurance is crucial, as they impact policy validity, claim decisions, compliance, and more.
Additionally, based on the change, the endorsement premium of car insurance is also updated to align with your additional or reduced coverage requirements. This will ensure correct policy optimisation and premium management without any hassle.
Frequently Asked Questions
1. What are car insurance endorsement charges?
The car insurance endorsement charges depend on two things: the insurer and the type of endorsement. In most cases, insurance providers charge a fixed fee for processing endorsements. However, for some endorsement types, a variable fee might apply.
2. Are there any repercussions of not updating your car insurance with endorsements?
Not updating your car insurance with the necessary endorsements can have severe repercussions, such as policy claim rejections, legal issues with the traffic authorities, the risk of higher premiums, and policy renewal delays.