While everybody knows that having insurance for your car is mandatory while driving on roads in India, not everybody is aware that policies can be updated periodically to reflect changes in the vehicle. Any kind of change to a car insurance policy is called an ‘endorsement’. These changes can include coverage changes, vehicle changes, loss payee changes, driver changes, and a wide array of miscellaneous changes.
An endorsement is incorporated within an existing policy by issuing an Endorsement Certificate. Car insurance agencies expect policyholders to make these changes as their needs change over time. It is essential for policyholders to update their existing insurance with the endorsements they require as and when they make changes to their vehicle as well. If your policy is not up-to-date with the changes made in your vehicle over time, settling claims can become a nightmarish process.
1. How often can you request an endorsement?
Periodic endorsements are necessary to keep your insurance policy up-to-date with the changes in your vehicle. On average, an existing car policy will be endorsed at least once a year. If you have made multiple changes to your car, which include changing the components of the vehicle itself, make sure to incorporate these within the endorsements to your car insurance policy. This will ensure that you have no trouble settling claims, for any unforeseen reasons.
Ideally, you should submit a request for an endorsement to your policy as soon as you make changes to the car. This will ensure continued coverage for your vehicle with an up-to-date insurance policy. However, too many endorsements also widen the scope for errors which may prove to be stumbling blocks while you are attempting to settle claims. With Car insurance policy, available on Finserv MARKETS, you can maintain transparency on the whole process by applying online for the best car insurance policy in India.
2. Types of changes that call for endorsements to your insurance policy
Details ranging from change in the name of the policyholder, to change in ownership of the vehicle or changes to the vehicle itself require changes to your car insurance policy in the form of endorsements. Changes to the vehicle may include a change in the model or make of your car, change in your vehicle’s fuel type, change in the seating capacity of the vehicle, etc.
3. How do I make an endorsement?
Making an endorsement to your existing car insurance policy is an easy task. You will need to contact your insurer and provide them with details of the endorsements you wish to make to your existing policy. Your insurer will require you to furnish proof for the changes you have made to your vehicle. In case the changes are more to do with the policyholder or involve a change in the ownership of the vehicle or change in the nominee details for the policy, then you might have to furnish proof of sale or other such relevant documents.
The insurance agency will verify the authenticity of the changes cited and will incorporate the changes to your policy post a detailed verification. You will be issued an Endorsement Certificate citing the changes you have requested for your existing policy. Check out Car Insurance today, on Finserv MARKETS, to understand how you can take charge of the process yourself by filing documents online.
4. Are there monetary implications to making endorsements to an existing policy?
While making endorsements is a relatively simple process which just involves you furnishing a request letter for the endorsement and proof of the changes you have made to your vehicle, there can be several changes that cause your car insurance premium to increase or decrease.
For instance, if the make of the car you own has been upgraded or if changes have been made to enhance existing features such as the cubic capacity of the car; then the premium you pay for your car insurance policy will also increase. In this case, you will be required to pay an additional amount as premium for your car insurance policy.
Now that you know why it is important to update your policy through endorsements, make sure you follow through. Ensure correct documents are filed at the time of requesting endorsements to your existing policy. This will help you and your insurer avoid making mistakes while updating your policy to reflect the newly-added endorsements.
At the time of settling claims, the entire process will also be more seamless and transparent for all parties concerned if your documents are in order. With Car Insurance available on Finserv MARKETS, you can bring an additional level of transparency to the process by completing the entire process online.
Also read about what is zero depreciation car insurance
To know more on car insurance in depth, you can check out these blogs:
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”