Understand What is Endorsement in Your Car Insurance Policy?

Understand What is Endorsement in Your Car Insurance Policy?

Getting an insurance policy for your car is crucial, but it is equally important to verify it. Errors might happen occur due to oversight, be it human error or a technical one. Hence, it is essential to check your policy thoroughly. For instance, the insurance company might input the wrong vehicle model. That’s when you need to take it up with the insurance company for the necessary changes. Such errors if ignored may lead to a rejection of your claim application. These amendments in your car insurance policy are called endorsement.

Endorsement in Car Insurance

Endorsement refers to the facility to amend your policy information including the terms of the contract. This endorsement is issued by way of an endorsement certificate and in addition to your original policy document. By way of endorsement, you can either request amendment in policy information or even add and delete including any alternations. Further, these changes can be either concerning personal information in the policy or vehicle related. Once an endorsement is made, it is essential to carry both the original policy document as well as the endorsement certificate that together constitute the entire car insurance policy.

Limitation on Endorsement

There is a misconception that endorsements can be made only a limited number of times. However, that isn’t the truth. An endorsement can be requested any number of times, either after the initial purchase, or at renewal and mid-policy tenure. That being said, endorsements must not be made at random thereby requiring only a concrete reason for such endorsement.

Neither the regulator, Insurance Regulatory and Development Authority of India (IRDAI), nor the insurance company has a ceiling on the number of times an endorsement can be requested. But insurance experts recommend making such changes only for a finite number of times that ensures the changes are updated with the insurance company. Frequently updating the insurance records may lead to confusion on the correct information in effect leading to rejection of the insurance claim. You can visit the official website of IRDAI for further details.

Types of Car Insurance Endorsements

Endorsement can be categorised in two types wherein one amends the existing policy terms whereas the other adds coverage to your existing policy.

  • Amendment in current policy coverage: Any alteration to your current insurance policy that is eventually a part of your insurance cover is classified in this category. Such changes may or may not impact the car insurance prices based on the nature of change. *
  • Addition to current insurance cover: Another type of endorsement where the insurance policy is amended to include more coverage in the policy’s scope. *

In both the above cases, you are required to retain both the old, as well as the endorsement certificate as such endorsement supplements your primary policy document. Further, some of these changes may be related to your personal information like change in address or contact details whereas other changes can be amendments to the coverage of your insurance policy.

* Standard T&C Apply

Impact on Premiums

Not all endorsements have an impact on your premium figures. Only those changes that alter the coverage by way of either increasing or decreasing the policy’s scope impact the premium computation. For instance, a change where engine modification is made impacts the IDV and as a consequence, the premium amount. On the contrary, changes in any personal details like name, address, or other specifics do not witness any changes in premiums. * Standard T&C Apply

To assess the impact of a change on your premium amount, you can make use of a car insurance calculator. 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.

John Norwood
John Norwood is best known as a technology journalist, currently at Ziddu where he focuses on tech startups, companies, and products.