What is Endorsement in Car Insurance – A Complete Guide

Insurance Endorsements come into picture when there is any issue in your car insurance policy, such as spelling mistake in your name, or any update required in your address/mobile number etc., in your policy. Also, for moving your policy from the present insurance provider to a new one, you need to make endorsement with your current policy provider.

Endorsements in terms of Car Insurance?

Endorsements are the changes that you would like to make in your vehicle insurance policy. For instance, it can be a change you want to incorporate in the policy or an addition you want to make in your policy.  These are also called Riders and they allow you to add, change or remove any clause under your car insurance policy.

You would need an endorsement to increase your coverage limit, to reduce some amount from the total premium, or for any other changes like changes in personal details etc. Thus, endorsements allow flexibility, and help you legally connect your amendments to your insurance policy.

When can you make an Endorsement?

You can make an insurance endorsement during the tenure of the policy, at the time of buying a new policy, or while renewing a failed policy. Though many people think that they can make as many endorsements  as they want, but the fact is endorsements are allowed only one or two times in a year. Making more than two endorsements is not wise as it can lead to mistakes in your policy record. Moreover, it is also likely to cost you more during the time of making claims for your policy.

Types of Car Insurance Endorsements

There are two types of endorsements:

1. The first one allows changes in the coverage/terms of current policy:

Once you make the changes in the present policy, you must ensure to keep the updated copy of endorsements with you along with your existing documents. So, if you have updated your personal details, you must replace the documents with the latest changes.

2. The second one allows additions to the coverage/terms of the current policy:

If you get some additions or limitations done to your policy through endorsements like adding extra coverage or setting restrictions in some clause etc., and the changes are not influencing the entire term of your policy contract. Even in that case , you must keep the endorsement updates with you as they act as add-ons to the current policy.

Changes that can be endorsed in a vehicle insurance policy

Here are the changes that can be endorsed in your car insurance policy:

• Any update in the engine number
• Update in your car/bike’s registration number
• Any update in the chassis number
• Any changes made in the spelling of your name, phone number, or address, etc.
• In case of any additions done
• Any correction in the number of passengers covered
• Any alteration in your car’s cubic capacity
• Any correction in the make or model of the car
• In case of adding any intended deductibles
• Any modification in the No Claim Bonus of your car
• Any modification in the nominee details
• Alterations in fuel type
• Alterations in your car’s Insured Declared Value
• Modification in manufacturing year details
• If you transfer car ownership
• If there is any disparity of premium price
• If you add or remove any accessory of the car

Ways to make an Endorsement

Follow the steps below to carry out the insurance endorsement process:

• Endorsements can be made during mid-term of the policy, as well as while buying the policy or while renewing a lapsed policy.
• Your insurance policy provider keeps an official record of the changes by means of endorsement certificates. This document contains every change or update made in the policy together with the existing policy terms.
• To get the endorsements or changes done in the policy, you must tender a request application to your insurance company together with other required documents.
• Once your insurance provider receives the application, they will take necessary action after going through it. Finally, your request will be approved and you will receive a new document from your insurance company with the necessary changes.

Validity of insurance Endorsement 

Once the endorsement of your car insurance is done, it stays valid throughout the validity of the policy period. If you don’t make any further changes in the policy at the time of renewal, these changes will stay activated and valid until the expiry of the policy.

But, there might be some specific endorsements that are valid only for a particular time period as per the policy of the insurance provider. In such case, it is important to read the insurance policy conditions carefully before getting an endorsement done.

Can my insurance provider make changes in my policy?

It is important for you to clearly understand endorsement meaning in insurance so that you know about the changes made in the policy as per the endorsements. If you receive any information from your insurance company pertaining to any endorsements that you have not applied for, you must contact the company immediately and find out about it.  Also, in case you have any objections to any changes or endorsements, make sure it is corrected by the company immediately.

Things to do before renewing car insurance policy

It is better to make any endorsements at the time of renewal of your current policy. Here are some things that you should keep in mind:

• Try to renew your policy online to make it quick and hassle-free.
• Make sure to review Insurance Coverage and see if you want any changes in the policy.
• Look for discounted premium and check them well before renewing the policy.
• Make sure to renew your policy before expiry so that you don’t have to lose on NCB.