What is an Endorsement in Motor Insurance: Types & Process

Endorsement

You should be aware that each and every detail in your motor insurance policy should be correct also. If you have any incorrect details in your policy then your claim may be delayed or rejected. To make any correction or changes you should do endorsement in motor insurance policy.

Suppose someone has added a CNG in his car. He is driving his car without intimating to the insurance company. After three months of installing CNG his car gets damaged in a road accident.

In this case his motor insurance company can reject the claim because he didn’t add CNG in the policy. There may be many situations where you need to do changes/corrections in your motor insurance policy on time.

What is an Endorsement?

Basically, it is the process of making any correction or change in your motor insurance policy. it is the written documents of agreed changes in the insurance policy. You should keep this with your original motor insurance policy.

There are many possibilities for change in the policy. May be your insurance agent has done some mistakes while processing your policy. Possible that you have given any incorrect details of your vehicle.

Maybe you have done some modification in your vehicle or you want to add riders etc. Whatever is the reason, you must inform your insurer and you must do an endorsement for correction or change. Any kind of delay can be a big financial setback for you.

Process of Endorsement in Motor Insurance

You can do it by submitting a written request letter along with the supporting documents to the insurance company. In some cases you process it by calling to customer care only. It can be done through email communication also.

When you submit a request, your insurer do the changes in your motor insurance policy. After these changes it becomes part of your legal motor insurance contract. After completing the process your insurance provides you the endorsement letter.

Every endorsement is not possible only on behalf of the request letter and supporting documents only. In some cases insurance companies do an inspection of your vehicle also.

For example, the addition of CNG/LPG kit or vehicle ownership transfer, etc are such changes where inspection of the vehicle is required by the company.

What are the types of Endorsement in Motor Insurance?

Basically there are two types:

NIL or Non-Premium: This is the endorsement where you don’t have to pay any premium towards the change or correction. Following are some changes/correction where there is no need to pay any additional premium:

  • Correction or change in policyholder’s name
  • Correction or change in nominee name
  • Engine or Chasis number correction
  • Change in contact details
  • Change in customer gender

Non NIL or Premium: In this case, you need to pay some additional premium for the changes/correction. Following are some examples:

  • Addition of CNG/LPG kit in your vehicle
  • Addition of electrical or non-electrical accessories
  • If you add any rider like RTI or Zero Depreciation etc
  • Removal of anti-theft discount from your policy
  • Sports activity or rally participation
  • Ownership transfer

What will be the Validity?

Whenever you do any endorsement in your policy then it becomes the part of a legal contract. This remains valid till the time your insurance policy is valid. You may renew your policy with the same terms and conditions also.

However, you can not renew all the endorsements all the time. Normally you can’t renew all add on coverage after some time. Because some add on covers are available up to a certain age limit of the vehicle.

When you can request for it?

There is no specific time for any endorsement. However, you should do it as soon as possible. Any delay in correction or change may cost you high later. First thing, you must read your policy document after purchasing it.

Check all the personal and vehicle details in the policy. All the details should be correct. If you find any wrong details or coverage then you contact your insurer immediately. Request for the required correction without any delay.

You can do endorsement at following stage:

  • At the time of purchasing motor insurance policy
  • At Mid-term of policy
  • Renewal time

Doing it is a very easy process and most of the companies are having a very smooth process for changes/correction in a motor insurance policy. Not doing it on time can result in disputes at the time of the claim process.

Should you keep your original policy document after endorsement?

Yes, you must keep your original policy document along with the endorsement letter. It is the process where you can do changes or corrections in the policy and it becomes the legal part of your insurance contract. But entire policy wording will not be affected.

So, there is no need to change the complete policy document. That’s why your insurer provides you an endorsement letter. You must keep this paper along with policy documents.