All About Endorsement in Car Insurance

Endorsement in car insurability policy refers to changing existing policy details.

Endorsement in Car Insurance

Endorsement in car insurability policy refers to changing existing policy details. The change in details refers to the changes related to the vehicle, personal details, or change in policy coverage. This, any change in details that need to be reflected in the existing car policy is referred to as endorsement. Read on to know all about endorsement in car insurance.

What is Endorsement in Car Insurance?

When you buy car insurance, the policy document that is generated reflects details such as renewal date of the car, your name, your date of birth, etc. However, when filling the proposal form, you or the insurance advisor can fill incorrect details. Hence, it is necessary that you rectify these errors as soon as possible to ensure that the policy is updated with all the correct details.

Depending on the terms and conditions of the policy, the insurer might issue you a revised policy copy or a fresh one altogether. Hence, endorsement can be described as an agreement between the insurance company and the policyholder to make changes in the existing policy details.

Validity of Car Insurance Endorsement

There is no such specific validity period for making endorsement in your car policy document. You can proceed with making the endorsement after the policy is issued, either at the time of renewal or during the policy tenure.

How many times can one do Endorsement in Car Insurance?

Any endorsement to be made in car policy can be done twice or thrice a year depending on the policy terms and conditions. Few insurers restrict you from making multiple endorsements in a year.

It is also advised not to make multiple changes as it can lead to confusion at the time of renewal and you might also lose track of the latest policy document.

Types of Endorsement in Car Insurance

Endorsement in car insurance can be divided into two types I.e financial endorsement and non financial endorsement.

Financial endorsement refers to the changes for which the insurance company will charge a fee. This includes changes to the car such as its seating capacity, paid driver, CNG addition, change in insured declared value, manufacturing date change, period of insurance, transfer of ownership of the car, etc.

Non financial endorsement refers to the changes in the policy document for which the insurer will not charge any fee. This includes addition of GST number, chassis number, color change, insured name, hypothecation addition or removal, etc.


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