What the Implications of Carrying Out an Endorsement in Your Car Insurance Policy?

Car Insurance Policy


Car insurance is a legal requirement that needs compliance by all car owners. The Motor Vehicles Act of 1988 makes it mandatory to get an insurance policy to legally drive one in the country. However, many car owners are not aware of such requirement. Thus, they end up buying it the first time to meet registration requirement, but do not follow it up during renewals. Even if some do follow it up, they do not verify the accuracy of these details. The car insurance policy must not just be valid, but also be accurate concerning the details mentioned therein. Hence, if need be corrections can be made to rectify these mistakes using the endorsement facility.

What is the meaning of endorsement in a car insurance policy?

Endorsement is a facility provided by the insurer to update information and the terms of your policy. This document lets you amend critical information in your policy documents. The amendments can be in the form of additions, deletions, or other alterations too. Moreover, the changes can be related to either your vehicle’s details or your personal information that must be updated at your insurer’s end.

An endorsement is no standalone document, but an addition to your original car insurance policy. Hence, one it is successfully made with the insurer, it is necessary to carry both the endorsement letter and the original policy that make up your entire policy document.

What are the implications of an endorsement?

Endorsement in a comprehensive or third party car insurance can be of two types—premium bearing or non-premium bearing. Based on the nature of such endorsement, it may either increase your premium or not. However, in general, an endorsement has the effect of replacing the erstwhile information with the updated and latest information in your insurance plan. Although the policy document is not revised, a supplementary document evidences such changes that the insurance company has taken on record. * Standard T&C Apply

Is there a limit on the number of times an endorsement can be requested?

A common misconception floats that endorsement of your car insurance policy can be done a limited number of times. However, there is no limit on how many times an endorsement can be requested. Neither the regulator nor the insurance company restricts on how many changes can be made. That being said, it isn’t advisable to make changes frequently. Recurring changes often results into confusion and mix up, both for you and the insurance company. Hence, to stay clear of such mix-up, it is recommended to make an endorsement only for critical changes.

* Standard T&C Apply

Are premiums impacted due to an endorsement?

All endorsements do not impact the premium. Only those amendments that either increase or decrease the policy’s scope have a direct bearing on the premium amount. For instance, a modification to your car’s engine results in impacting the IDV of your policy. Here’s when the premiums are impacted. To assess the impact of these changes, you can make use of car insurance calculator to estimate the change in the premium. Other changes like correcting the address, changing the nomination, contact details and the like do not impact the premium. * Standard T&C Apply.Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.


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