Insurance Endorsement

An endorsement is a document that incorporates revisions and additions to the policy's existing terms. It is written proof of an agreed-upon policy change. As a result, it's a good idea to double-check your insurance coverage as soon as you get it. If there are any discrepancies, you must contact the insurance company to rectify the matter.

Type of Endorsement

There are basically two types of insurance endorsements. They are as discussed below:

• 1. Financial Endorsements

  An endorsement in a insurance policy that requires additional premium payment is referred to as financial endorsement. For example, if your endorsement adds extra coverage to your existing insurance policy, it will be a financial endorsement because you will be required to pay an additional premium amount. Some of the most common types of financial endorsements are:

• - Transfer of name or ownership
• - Endorsement for rally participation
• - Inclusion of personal accident cover
• - Add-on inclusions or riders
• - Inclusion of CNG or LPG kit
• - Addition or removal of electrical or non-electrical accessories
• - Deletion of anti-theft device and membership of AAI
• 2. Non-Financial Endorsements

  An endorsement in a insurance policy that does not require any kind of additional premium payment is referred to as a non-financial endorsement. For example, if you wish to update your address details in the policy, the endorsement will replace the original policy documents without needing any extra charges. Some of the common examples of non-financial endorsements are as follows:

• - Modifications in name and address
• - Modifications in contact details
• - Modifications in chassis and the engine number
• - Correction of registration number
• - Correction in customer type
• - Modifications in nominee
• - Modifications in vehicle variant, fuel type, cc, make, and model

How Does A Insurance Endorsement Function?

An endorsement is a policy modification that can be made throughout the policy's term without having to renew it. As a result of the endorsement, your premiums may change. They are in effect until your car insurance expires, and they may be renewed on the same terms as the rest of your policy. The only exception is if the endorsement specifies a certain time period. By issuing an Endorsement Certificate, an endorsement is incorporated into your existing insurance policy. You'll probably acquire a insurance endorsement in one of two situations: if you require an upgrade to your policy, and the other, if you've made alterations to your vehicle that necessitate a change in your policy. As and when policyholders make changes to their vehicles, it is critical that they renew their existing insurance with the endorsements they require. If your policy does not keep up with the changes in your vehicle over time, you risk having your claims denied owing to contradicting facts.

How Many Times Can You Endorse Insurance?

In order to keep your current insurance policy up-to-date with your vehicle’s changes, you should do periodic endorsements. The changes should be done at least once a year on average. In case you have made several modifications to your vehicle, make sure to indicate them in your insurance endorsements. This is important to ensure that you face no difficulty while resolving claims in case of unpredicted circumstances. As soon as you make changes to the vehicle, you should submit a request for an endorsement to your insurance provider. This will ensure that your vehicle is covered by an up-to-date insurance policy. Use insurance endorsements only when absolutely essential; too many endorsements can increase the risk of errors, which can be a stumbling block when trying to settle claims.

Steps For Making An Endorsement In Your Insurance Policy

You may need to submit a request letter to your insurer along with the relevant papers to carry out an endorsement. The endorsement procedure begins once the insurance provider gets your request, and appropriate actions are taken once it is authorized. For a better understanding, below is a step-by-step procedure for making an endorsement.

• 1. Contact Insurance Company: Contact your insurance provider and explain the changes you'd like to make to your current insurance coverage.
  
• 2. Verification: Your insurer will demand verification of the modifications you've made to your vehicle.
  
• 3. Providing Proof: If the changes are primarily about the policyholder, vehicle ownership, or nominee information for the policy, you may be required to provide proof of sale or other applicable papers.
  
• 4. Checking Authenticity: After a thorough review, the insurance firm will verify the authenticity of the requested adjustments and will apply them to your policy.
  
• 5. Issuance Of Endorsement Certificate: An Endorsement Certificate will be sent to you, detailing the policy changes you've requested.
  
• 6. Changes In Documents: After making the appropriate modifications, your insurance company will give you a new policy copy.
  

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