Know Everything About Endorsements in Car Insurance

The endorsement in a car insurance policy means changing the information mentioned in the policy document. This article explores different types of endorsements in car insurance, how to apply for them, and things to remember while making an endorsement.Read more

What is an Endorsement in a Car Insurance Policy?

When you buy a car insurance policy from an insurer, your policy documents have specific details about the car like renewal date, personal information, policy number, etc. But sometimes, these details might be wrong or incorrect. If there is any error, you should rectify those errors as early as possible. The process of rectifying those errors is known as an endorsement in the insurance policy.

Depending upon their terms and conditions, your insurer might cancel the previous policy and issue a new one by making necessary changes or they will provide an extended letter with all the changes along with your original policy documents. Therefore, endorsement can be considered an agreement between the policyholder and the insurer to make changes regarding the rectifications in the policy documents.

Types of Car Insurance Endorsements

The extent of endorsements in a car insurance is divided into two parts- financial endorsements and non-financial endorsements. Here is a table showing different types of endorsements falling under both categories-

1. Financial Endorsement

   It refers to written changes made in the policy documents for which the insurer will be charging a fee.

   Serial No.	Name of Endorsement	Documents Required	Duration	Fee Amount	Need for Inspection
   1.	Seating Capacity	RC copy (front + back)	10 Days	N/A	N/A
   2.	Personal Accident Owner Driver	Aadhar card + Driving License	10 Days	Rs 350-450 (depends upon the insurer)	N/A
   3.	Paid Driver	3 months’ salary slip of the driver	10 Days	Rs 50	N/A
   4.	Unnamed Passenger Cover	Copy of the RC (front + back)	10 Days	Rs. 50 for 1 lakh cover & Rs 100 for 2 lakh cover	N/A
   5.	CNG Addition External	Invoice of the CNG kit & RC copy (front + back)	10 Days	Rs 60+4% of the kit value	Required
   6.	CNG Addition Company Fitted	Copy of the RC (front + back)	10 Days	Rs 60+5% of the OD Premium	Required
   7.	Fuel Type	Copy of the RC (front + back)	10 Days	Short fall amount declared by the insurer	May be required
   8.	Cubic Capacity of the Car (CC)	Copy of the RC (front + back)	10 Days	Short fall amount declared by the insurer	May be required
   9.	Change in IDV	Copy of the RC (front + back) + Previous Year Policy	10 Days	Short fall amount declared by the insurer	May be required
   10.	Date of Manufacturing	Copy of the RC (front + back)	10 Days	Short fall amount declared by the insurer	May be required
   11.	Model & Variant of the Car	Copy of the RC (front + back)	10 Days	Short fall amount declared by the insurer	May be required
   12.	Period of the Insurance	Previous Year Policy	10 Days	Short fall amount declared by the insurer	May be required
   13.	Transfer of the Ownership	Updated RC/Form 29&30/Receipt/ + New Owner DOB, Address, Mobile No, Email Address, Nominee Name, DOB of the Nominee, Relation (in case PA cover is part of the policy)	10 Days	Rs 60 Admin Fee + Short fall amount declared by the insurer(if NCB or claim has been taken in the current policy)	Required

2. Non-financial Endorsement

   It refers to those modifications in the policy documents for which the insurer will not charge any fee and do the required changes.

   Serial No.	Name of Endorsement	Documents Required	Duration	Fee	Need for Inspection
   1.	Addition of GST No.	GST certificate	10 Days	N/A	N/A
   2.	Communication Address	Written Consent	10 Days	N/A	N/A
   3.	Date of Birth (DOB)	Written Consent	10 Days	N/A	N/A
   4.	Color Change of the Car	Copy of the RC (front + back)	10 Days	N/A	N/A
   5.	Email Address	Written Consent	10 Days	N/A	N/A
   6.	Chassis Number	Copy of the RC (front + back)	10 Days	N/A	N/A
   7.	Engine Number	Copy of the RC (front + back)	10 Days	N/A	N/A
   8.	Hypothecation Remove	NOC from the bank against loan	10 Days	N/A	N/A
   9.	Hypothecation Addition	Copy of the RC (front + back) + Load Declaration + Letter from Bank	10 Days	N/A	N/A
   10.	Insured Name	Copy of the RC (front + back) + Previous Year Policy	10 Days	N/A	N/A
   11.	Mobile No.	Written Consent	10 Days	N/A	N/A
   12.	NCB Certificate	Previous Year Policy + Sell Letter + NCB Declaration from Previous Insurer	10 Days	N/A	N/A
   13.	Nominee Details	Name + DOB + Relation with Written Consent	10 Days	N/A	N/A
   14.	Registration Number	Copy of the RC front + back (can be financial also)	10 Days	N/A	N/A
   15.	Salutation	Written Consent	10 Days	N/A	N/A

When Do You Need to Make an Endorsement?

You need to make an endorsement in your car insurance policy in the following scenarios:

• After buying or selling a car to update ownership details
• After installing any electrical or non-electrical accessory in your car
• If there are any errors in your policy document
• Any changes are required to your personal or car details
• In case of car insurance transfer or policy renewal

Things to Keep in Mind While Making Car Insurance Endorsements

When making an endorsement in your car insurance policy, keep these things in mind to ensure your policy remains valid:

• Know if the type of car insurance endorsement is financial or non-financial. In case of a financial endorsement, you can expect an increase in your premium amount.
• Notify your insurer immediately of any changes in your policy. Any unreported changes may result in the rejection of the claim due to a lack of transparency.
• Most of the endorsements require documents like an updated RC (registration certificate) for vehicle modifications, an invoice (in case of any new accessories), etc.
• In case of a specific advanced endorsement, such as the installation of an external CNG kit, the insurer may inspect your vehicle.
• Make sure that the changes are reflected in your policy and ask for an endorsement certificate as proof of the amendment.

Car Insurance Endorsement Validity

Endorsement of the policy is conducted just after the policy is issued. You can easily endorse your policy before the renewal or during the policy tenure. The car insurance endorsement validity depends upon the type of endorsement and the terms & conditions of the insurer.

How Many Times You Can Make Car Insurance Endorsements?

Many people believe that they can make multiple endorsements in their policy documents during the policy period. However, it is not possible. You can make any changes or edits to your car insurance policy once or twice a year, depending upon the insurer's terms & conditions.

Moreover, it is advised not to make frequent changes in your policy documents as this might create confusion while updating the records. Also, it can impact you adversely at the time of raising claims.

How to Make an Endorsement in Car Insurance?

You can apply for an endorsement in your car insurance policy either online or offline. Here are both the processes:

Online Endorsement Process

• Log in to your account on the insurer's website or app.
• If you have purchased your policy from Policybazaar.com, visit this page and sign in to your account dashboard.
• Select your active car insurance policy and select the type of endorsement you want to make.
• Upload the required documents for verification.
• In case of a financial endorsement, pay the additional premium amount.
• Upon payment, you can download the updated policy document, which will reflect the changes.

Offline Endorsement Process

For the offline endorsement, contact your insurer or insurance agent and inform them about the required changes. Submit a written request and the supporting documents. Upon verification and approval, your insurer will issue a revised car insurance policy document.

Final Words

Whether it's a small correction or a major one, making timely endorsements to your car insurance can save you stress and financial loss. It is advised that you always review your policy details and update them promptly in case of any change in your personal or car details to ensure effective policy coverage and hassle-free claim settlement.