How to Change the Nominee Name in Your Car Insurance Policy?

If you have a car, it must be covered under a car insurance policy. After all, car insurance with at least a third party cover is mandatory in India and violating this motor law can get you a challan. Besides, car insurance comes to your aid when you need financial assistance to cover your legal liabilities or own damages arising out of your car. By paying a small premium amount, you can save yourself from financial distress that can result from unforeseen incidents involving your car.

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A car insurance policy also provides coverage for the personal accident of the owner-driver of the car. In case the accident of your car results in your death, the insurer pays compensation to your family. The compensation will be paid to your legal heir unless you have mentioned a nominee at the time of buying the insurance policy.

Wondering who a nominee is? Let’s find out.

Who is a Nominee in Car Insurance?

A nominee is a person assigned by the policyholder under a car insurance policy to get the claim amount or compensation in case of the car owner’s demise. Also referred to as the beneficiary, the nominee is assigned by the policyholder while filling the proposal form at the time of buying the policy.

In the case of car insurance, the nominee receives the claim amount under two circumstances. First, when the policyholder dies in an accident of the insured car. In this case, the insurer pays death compensation to the assigned nominee. Second, when the policyholder dies after raising a car insurance claim and cannot receive the claim amount. In this case, the insurer pays the claim amount to the assigned nominee.

Most people assign their spouse or legal heir as their nominee as family members are trustworthy. They are more likely to utilize the compensation received by the motor insurance company for the well-being of the deceased policyholder’s family.

Thus, the nominee assigned by the policyholder and his/her legal heir can be the same person. In fact, it is easier to transfer the car insurance policy to the legal heir’s name if he/she is the nominee.

But what if you want to change your nominee?

Suppose, you bought a car when you were unmarried and had assigned your brother as the nominee under your car insurance policy. But three years later, you got married and now you want to make your wife your nominee.

Well! You can change the nominee in your car insurance policy with the help of an endorsement.

Endorsement in a Car Insurance Policy

An endorsement refers to any changes or additions made to the existing car insurance policy by the policyholder. It is a document that incorporates and records any changes or amendments in your existing policy made as per your request. It acts as proof of any agreed changes made to your car insurance policy.

For instance, if you have changed your phone number and want to get it updated on your car insurance policy document, your motor insurer will pass an endorsement to reflect the change.

Now, coming back to your question.

If you want to change the nominee under your car insurance policy, you will have to get your motor insurer to pass an endorsement. You can request your insurer to pass an endorsement at the start of the policy year, mid-year or at the time of policy renewal.

In some cases, the policyholders may have to submit supporting documents as evidence to get the changes made to their policy. But, you do not need to submit any documents to change the nominee name or any nominee details under your policy. This is because the decision to choose a nominee in your car insurance policy or change it is completely your discretion.

Sometimes, endorsements in car insurance can also lead to an increase in your premium. For instance, if you install a CNG kit in your petrol car, the liability of your insurer towards your car increases. As a result, the insurer will charge you a higher car insurance premium.  

However, a change in your car insurance nominee name will not impact the premium. Thus, your premium will remain the same even after the endorsement.

How to Change the Nominee Name under an Existing Car Insurance Policy?

The process to change the nominee name under your existing car insurance policy is pretty simple. All you need to do is write an endorsement request letter to your motor insurer mentioning the name of the new nominee. You can send the letter via email depending on the terms of your insurer. Since no documents are required to change the nominee name, the insurer will pass an endorsement on the receipt of the letter.

Moreover, you do not require the consent of the existing nominee before changing the nominee name as it is your sole decision.

Other Types of Endorsements Available under Car Insurance

Here is a list of other types of endorsements that can be passed under a car insurance policy:

• Name change/ correction
• Change/ correction in contact details, such as phone number or email id
• Address change
• Change/ correction in car’s registration number or manufacturing year
• Correction in car’s engine number
• Correction in car’s chassis number
• Change/ correction in car’s make/ model/ engine CC
• Correction in the car’s fuel type
• Mismatch in car insurance premium
• Mismatch in the car’s IDV (Insured Declared Value)
• Correction in car’s seating capacity
• Change in nominee name or details
• Change in covered passengers
• Increase/ decrease in voluntary deductibles
• Installation/ removal of CNG kit
• Installation/ removal of electrical/ non-electrical accessories
• Hypothecation addition/ removal
• Renewal of expired policy
• Non-receipt of the policy document
• Transfer in policy ownership
• NCB transfer to another policy

Make sure to notify your insurer about any major changes to your car, which may impact your premium. If later your insurer finds out about any changes to your car that you had not informed about, your insurer may reject your claim.

In a Nutshell

Assigning a nominee under your car insurance policy is a crucial decision as that person will get the claim amount/ compensation in case of your untimely demise. You must assign a trustworthy person as your nominee, preferably family members, so that the money can be used to meet the financial needs of the family. In case you wish to change the nominee details in your car insurance policy, you can easily request your motor insurer to pass an endorsement and the change will be made.