What Must You Know About Car Insurance Endorsements?
Published On Feb 18, 2019, Updated On Jan 08, 2021
Know More About Auto Insurance Endorsements
Having car insurance is more than necessary if you are eager to ply your car on Indian roads. However, what you must be schooled about are endorsements. Sounds pretty new, right? Well, if you already have hands-on a car insurance policy, you must know about the significance of endorsement. Let’s get started without any hold-up.
Meaning of endorsement - What should you know?
Typically, the term refers to the corrections and changes made in a motor insurance policy. Wondering who initiates these changes? Well, it is essentially the role of an insurer to make corrections in the policy document, on the sole behalf of the policyholder.
Regardless of whether you’ve signed up for the best car insurance policy or not, learning the ins and outs of endorsement is extremely beneficial. Insurance endorsement form - this little piece of paper plays a cardinal role. It functions like a tailpiece to the very treasured protector for your vehicle. Just when you thought, pick selecting the best insurance plan for your car was enough, here springs up a whole new chapter. ENDORSEMENT - little did we realise that this feature can come as one of many times.
Are you a responsible one, flipping through each of the facts jotted down in your insurance cover? Good if you are. However, it does throw you in a pickle if you are not very careful about the facts included in your policy. Stepping in as a saviour is a motor insurance endorsement. Bear in mind, any kind of change done to a policy is called an endorsement. Alteration in coverage, loss payee changes, vehicle changes, corrections in the details of the driver and hoards of other miscellaneous changes are included. Each of these changes or correction is incorporated in the policy by the insurer. Is your mind playing around the idea that these changes are initiated in the original policy? Actually not! No alteration of any kind is made in the original policy cover. Instead, to set the changes in effect, a specific Endorsement Certificate is issued.
Endorsement – Why was it brought on boards?
Auto insurance companies in the business are aware of the fact that customers prefer making changes in their policies. These step-up when their needs change over a period of time. One of the prime reasons why endorsements were created was to succumb to these changes. As per the stats, policies are endorsed at-least once a year. Of course there are exceptions. Quite a decent fraction of customers opt to alter their policy innumerable times in a year. Is it suggested? Does it work?
The answer is ‘NO’! For instance, if a customer processes requests to add or remove coverage on a particular vehicle more than once or twice in a year, it does pave way for difficulties. Motor insurance endorsement if initiated several times for one vehicle in a year welcomes problems on its own. Thinking what could it be? Well, frequent changes endorsed in a policy beefs up the scope of mistakes. In circumstances of pressing need where claims pop up as the only option, these mistakes could kiss goodbye to your chances of bagging in the promised claim amount. Instead, you might end up burning holes in your wallet just because the change endorsed in your policy was not updated or written incorrectly.
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