All you need to know about car insurance endorsements

Car insurance endorsements refer to modifications or changes made to a car insurance policy’s standard terms and conditions. It is essentially a document that alters the coverage provided by the motor insurance policy to meet the specific needs of the policyholder. It allows policyholders to add or remove certain coverage areas, change policy details, or update the location. This article will explore the various aspects of car insurance endorsements in India.

Purpose: The main purpose of an endorsement is to customize the policy based on the policyholder’s requirements or circumstances. It allows for flexibility in coverage and helps policyholders tailor their insurance to better suit their needs.

Types of Endorsements

• Additional Named Insured: This endorsement adds another individual as a named insured on the policy by Policy Ensure, allowing them to receive coverage benefits.

• Exclusion: An exclusion endorsement excludes coverage for a specific driver, vehicle, or situation that is otherwise covered by the standard policy.

• Additional Coverage: This type of endorsement adds extra coverage options to the policy, such as roadside assistance, rental car reimbursement, or coverage for custom equipment.

• Change of Address: If you move to a new location, this endorsement updates your policy with the new address information.

• Lienholder: When you have a car loan, the lender may require an endorsement to list them as a lienholder on the policy.

• Bi-Fuel Kit: If a car has a bi-fuel kit installed (e.g., CNG/LPG), this endorsement adds coverage for the kit.

• NCB Protection: No Claim Bonus (NCB) is a discount offered for claim-free years. This endorsement protects the NCB even if a claim is made during the policy period.

Process of Endorsements: To obtain an endorsement in car insurance, the policyholder must contact their PoSP or agent to communicate the desired changes. The PoSP will provide the necessary forms and documentation to complete the endorsement request. Supporting documents like registration papers or proof of address may also be required, depending on the endorsement type.

Premium Impact: Depending on the nature of the endorsement, there may be a premium adjustment. Some endorsements may increase your premium, especially if they add additional coverage or increase the risk for the insurer. On the other hand, exclusions or removal of coverage may lead to a premium reduction.

Policy Documentation: Once an endorsement is approved, you will receive an updated policy document that reflects the changes made. It is important to review this document carefully to ensure the endorsement accurately reflects your requested modifications.

Timelines and Restrictions: The Insurance Regulatory and Development Authority of India (IRDAI) has set guidelines for the processing timelines of endorsements. Insurance companies are required to process endorsements within specified timeframes to ensure timely updates to the policy. However, these timelines and restrictions may vary among insurers.

Remember that the specific rules and procedures for endorsements may vary between insurance companies and jurisdictions. It’s important to consult with your insurance provider or agent to understand the available motor vehicle insurance endorsement options and their implications before making any changes to your car insurance policy.

How many times can one opt for endorsement in car insurance?

The number of times an endorsement can be changed in car insurance policies can vary depending on the insurance company and the specific policy terms. Generally, there is no strict limit on the number of times an endorsement can be modified. However, frequent changes or modifications to an insurance policy through endorsements may be subject to certain restrictions or additional scrutiny, potentially affecting the premium. Factors such as the nature of changes, the impact on policy coverage, and the administrative resources required to process multiple endorsements often come into play in such cases.

It’s essential to keep in mind that each endorsement may come with its own administrative fees or premium adjustments. While there may not be a set limit on the number of times an endorsement can be changed, it is generally advisable to review and modify your car insurance policy when necessary, rather than making frequent or unnecessary changes that could increase costs.

Car insurance endorsements in India allow policyholders to modify their coverage according to their specific requirements. This includes adding or removing insured parties, changing vehicles, protecting NCB, or adding coverage for bi-fuel kits. By understanding the types of endorsements, the process involved, the premium impact, and the guidelines for endorsements in India, policyholders can make informed decisions about their car insurance coverage. 

Policy Ensure, one of India’s leading insurance brokers, offers convenient and seamless access to car insurance policy endorsements. Please contact the company or a Policy Ensure PoSP available locally for hassle-free policy insurance and endorsements.