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Understanding Endorsement and its Utility in Car Insurance

Driving on Indian roads without a valid insurance certificate is against the law. The Motor Vehicles Act of 1988 stipulates that all vehicles registered in the country must have an insurance cover along with registration and a PUC certificate. 

But there are instances when policies are purchased in a hurry or on the eleventh hour. Waiting for such a last moment can often lead to errors or mistakes in filling in necessary details in your insurance policy. These slip-ups may result in your claim application getting rejected. Hence, it is advisable to amend it at the earliest. 

How does one get these mistakes rectified? Do they have to cancel their existing policy and buy a new one? Well, it isn’t so complicated. All you need to do is contact your insurance company and obtain an endorsement. 

What is an endorsement in car insurance?

Endorsement is an amendment to the existing policy information and the terms of the contract. It can be either by way of addition, modification or deletion of any information and coverage of your insurance plan. All 4 wheeler insurance policies have the facility to modify and amend the necessary policy information. An endorsement is in addition to your already existing policy and does not replace the same. So, both the insurance policy and the freshly issued endorsement together form your updated insurance document. 

How many times can you make an endorsement?

The number of times you can request an endorsement to your car insurance policy has no specified limit. The change can be requested for any number of times. Neither does the law nor does the insurance company specify a limit on how many times you can request for an endorsement. However, it isn’t advisable to frequently make these changes. 

Recurring requests for these changes may often result in confusion for the insurance company. To stay clear of any such confusion, it is best you request only for the absolutely necessary amendments. Also, ensure the right information and coverage is selected to keep your car insurance policy updated. 

What are the different situations for which an endorsement can be made?

When you buy a comprehensive or third party car insurance online, endorsement can be made for modifying personal details, vehicle details, as well as policy coverage. For changes to policy terms or coverage, you need to have both, the original policy document along with the endorsement letter together as your insurance policy. Changes in personal details like name, address, contact number, car’s engine number, chassis number, fuel input, revision of insurance coverage, modification of policy terms like opting for deductible or purchasing add-ons are some of the examples where an endorsement comes in handy.  

Does an endorsement impact your premium?

The impact of endorsement on your premium can only be decided based on the nature of change. For instance, engine up-gradation changes that impact the IDV of your car increase the premium upon an endorsement. However, correction in policy details like alteration of personal details or vehicle details does not impact your premium. 

This is how you can make the most of endorsements in your car insurance policy. When modifying your insurance coverage, you can make use of a car insurance premium calculator to assess its impact on your premium too. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Emma Murray

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