A car insurance policy offers a safety cushioning against unforeseen incidents of damage and expenses that follow such events.
In this process, you submit multiple relevant and personal details, like address, contact information and documents. After a period of time, these details change, or there is a chance that you have submitted the wrong information.
What are you supposed to do in such cases? Endorsement!
When you buy a comprehensive car insurance plan, you must educate yourself about small concepts, queries, and details that will help you stay updated. Let’s learn more about it.
Car Insurance Endorsement: Meaning
Endorsement in your car insurance policy means making necessary and accurate changes, adjustments or amendments to your policy regarding your personal or policy details.
For instance, let us say that the predetermined Insured Declared Value (IDV) is ₹8,00,000/- But you realise that this amount is inadequate for your current four-wheeler and you need to change the IDV. Hereafter, you will start the endorsement process to increase the IDV in insurance.
This feature, auto insurance endorsement, makes customising your car insurance straightforward and streamlined. Thanks to car insurance endorsements, you can increase, decrease, change or update your policy and personal details.
Car Insurance Endorsement: Frequency and Validity
Frequency
As recommended by insurers, you can proceed with endorsements either once or twice a year. Multiple car insurance endorsements may lead to unnecessary errors and misunderstandings.
It is also advisable to perform auto insurance endorsement mid-term, at renewal or while purchasing a new policy. If you are contemplating the endorsement procedure, you must ask your agent or your insurer’s customer service representative. Respectable companies like TATA AIG often practise prompt communication to resolve queries.
Validity
Your amendment or change is valid from the day of change to the policy’s term period. The changes will be carried forward after you renew insurance for your four-wheeler. Otherwise, the car insurance endorsement is valid for a predetermined period of time that is agreed upon by the insured and insurer.
Car Insurance Endorsement: Types
Here is a list of policy features or personal details that you can change, adjust or amend whenever needed.
Car-Related Endorsements
- Car engine number change/correction
- Car registration number change/correction
- Car chassis number correction
- New LPG or CNG kit
- Seating capacity change/correction
- Car make and model correction
- Car’s cubic capacity change/correction
- Car’s fuel type change/correction
- Car manufacturing year correction
- Electric accessory addition/removal
Policyholder-Related Endorsements
- Car ownership transfer
- Nominee detail correction
- Nominee change
- Policyholder’s name change/correction
- Policyholder’s address change/correction
- Policyholder’s mobile number change/correction
- Policyholder’s email address change/correction
Policy-Related Endorsements
- Disappearing deductible endorsement
- Driver exclusion endorsement
- No-Claim bonus change/correction
- Insured Declared Value change/correction
- Zero-depreciation add-on cover added/removed
- Premium amount mismatch
Car Insurance Endorsement: Process
- Visit your insurance company’s official website or application. Go through the auto insurance endorsement process. You can also call customer service or an agent about this.
- You can initiate the endorsement process online by sending an email to the company regarding the necessary change. In some cases, you might also be asked to send a written letter about the endorsement.
- Submit all the necessary/relevant documents by email or letter.
- The insurance company will verify your application, approve or reject it and make necessary changes.
- After the approval, your car insurance endorsement charge will be reflected in your premium. This means your premium will increase or decrease according to the changes made.
- You receive your auto insurance endorsement certificate.
Car Insurance Endorsement: Benefits
● Increased Accuracy
With the help of endorsements, you can increase the accuracy of your policy. Even if you are thorough with all the details, you might miss something or misinterpret some details, leading to an incorrect policy paper. However, with endorsement, the insurance for your four-wheeler is more precise and accurate.
● Enhanced Customisation
Along with increased accuracy and detailed corrections, car insurance endorsements also make customising your car insurance easy.
A mismatched premium, lower IDV, incorrect NCB and inadequate coverage can ruin your car insurance policy claim experience.
With the help of auto insurance, however, you can correct the premium, increase the IDV, correct the NCB and add add-on benefits.
● Peace of Mind
Imagine that your car’s registration number is wrong or your IDV is insufficient, and you want to claim a total loss. Endorsement enables you to make necessary changes beforehand and makes your claim procedure peaceful!
Conclusive Statement
Auto insurance endorsement is one of the most relevant procedures of your motor policy that you must know about. In future, suppose you file a claim against accidental damage. Your claim assessment will be carried out according to your policy details.
If these details are incorrect, insufficient or outdated, you might face substantial financial loss and emotional stress. Hence, understanding auto insurance endorsement offers knowledge updation along with peace of mind.