What Is An Endorsement In Car Insurance?

Driving a vehicle in India requires one to have to an insurance coverage against the risk of harm to a third party and damage to their vehicle arising from using one's own. Owners also insure their own vehicle as a cover under any potential damage that can be caused to the vehicle from an unfortunate event.

When inspected by the traffic police, you not only need to have these insurance papers, you also need to make sure that the details in the document are correct.

Any changes that are needed to be incorporated in the document are reflected as 'endorsements' in the vehicle insurance policy document.

What is an endorsement in a policy?

These are documents that incorporate any amendment or addition to the existing terms of the vehicle insurance policy. It is a written evidence of the change that has been agreed upon.

Suppose a policyholder wants to change any basic details (like address) or buy more coverage or add riders, he/she can approach the insurance company to make such a change and avail an endorsement.

The endorsement could be issued at the time of purchase of the policy, midway or at the time of renewal. One can also add benefits or coverage to the existing policy.

Some of the important changes that can be made to a vehicle insurance policy using endorsements are:

• Change/correction in policyholder's name
• Change/correction in policyholder's address
• Change/correction in policyholder's mobile number/email ID
• Change/correction in nominee's details
• Change/correction in registration number
• Change/correction in car variant/model
• Change/correction in car's cubic capacity
• Change/correction in engine number
• Change/correction in chassis number
• Change/correction in vehicle's fuel type
• Change/correction in the vehicle's year of manufacturing
• Change/correction in Insured Declared Value
• Inclusion of CNG/LPG kit
• Change/correction in seating capacity of the car/number of passengers covered
• Include or increase the voluntary deductible
• Correction in no claim bonus
• Premium Mismatch
• Transfer of ownership

The owner of the vehicle (policyholder) will have to submit a request letter with regard to the change to the insurance company. Documents supporting the change will have to accompany the letter as proof or rather to validate the change. The necessary changes will be made by the insurance company on verifying the supporting documents.

In case of ownership transfer endorsements where a transfer date cannot be ascertained from Registration Certificate (RC) or a notarized sale deed, pre-inspection will be mandatory. When the ownership transfer request is made within 14 days of the transfer date, a pre-inspection is not required.

In case of some endorsements where the specification of the vehicle changes, the premium on the insurance could rise or fall depending on the insurance companies evaluation of risk. For example, if a new accessory is installed in the vehicle that makes it safer, the premium amount could reduce.

One should get the endorsements done as soon as possible to avoid any delays in claim settlements that could arise due to inaccurate details.