What is an Endorsement in Motor Insurance? Full Guide

endorsement in Insurance
Endorsement in motor insurance

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

Suppose someone has added a CNG in his car. He is driving his car without intimating 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 to the policy. There may be many situations where you need to do changes/corrections in your motor insurance policy on time.

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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. Maybe your insurance agent has done some mistakes while processing your policy. It is also possible that by mistake you gave any incorrect details about your vehicle.

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

Process of Endorsement in Motor Insurance

You can do it by submitting a written request letter along with supporting documents to the insurance company. In some cases, you process it by calling 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 with 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 a CNG/LPG kit or vehicle ownership transfer, etc is such a change that an inspection of the vehicle is required by the company.

What are the types of Endorsements 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/corrections 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

Non-NIL or Premium: In this case, you need to pay some additional premium for the changes/corrections. 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

So Basically, these two above types of endorsement are available in motor insurance. For NIL endorsement, there is no need to pay any additional premium but in the case of Non-NIL, you need to pay an additional premium.

What will be the Validity?

Whenever you do any endorsement in your policy then it becomes 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 a few periods of time. Because some add-on covers are available up to a certain age limit of the vehicle.

When you can request 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 the following stage:

  • At the time of purchasing a motor insurance policy
  • During policy period
  • Renewal time

Doing it is a very easy process and most companies are having a very smooth process for changes/corrections 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 the 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 with an endorsement letter. You must keep this paper along with policy documents.

Conclusion

I would always advise that if you have any mistakes in your policy, or added any accessories, or any other changes, you should prefer to intimate your insurer and do an endorsement on time. Endorsement is a very important part of any insurance policy and you should not take it lightly.

Because, if don’t do the required endorsement on time, your claim might get affected. And the good part is, you can do it without any hassle. Generally, all companies like SBI general insurance, National Insurance, and all others have an endorsement process and you can approach your insurer easily. Even, you can contact your insurance agent and take help.

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