Know Everything About Endorsements in Car Insurance Policy

What is Endorsement in Car Insurance Policy?

When you buy a car insurance policy from an insurer, your policy documents have specific details about the car like renewal date, personal information, policy number, etc. But sometimes, these details might be wrong or incorrect. If there is any error, you should rectify those errors as early as possible. The process of rectifying those errors is known as an endorsement in the insurance policy.

Depending upon their terms and conditions, your insurer might cancel the previous policy and issue a new one by making necessary changes or they will provide an extended letter with all the changes along with your original policy documents. Therefore, endorsement can be considered an agreement between the policyholder and the insurer to make changes regarding the rectifications in the policy documents.

Car Insurance Endorsement Validity

Endorsement of the policy is conducted just after the policy is issued. You can easily endorse your policy before the renewal or during the policy tenure. The car insurance endorsement validity depends upon the type of endorsement and the terms & conditions of the insurer.

How Many Times You Can Do Car Insurance Endorsements?

Many people believe that they can make multiple endorsements in their policy documents during the policy period. However, it is not possible. You can make any changes or edits to your car insurance policy once or twice a year, depending upon the insurer's terms & conditions.

Moreover, it is advised not to make frequent changes in your policy documents as this might create confusion while updating the records. Also, it can impact you adversely at the time of raising claims.

Types of Car Insurance Endorsements

The extent of endorsements in a four-wheeler insurance is divided into two parts- financial endorsements and non-financial endorsements. Here is a table showing different types of endorsements falling under both categories-

1. Financial Endorsement

   It refers to written changes made in the policy documents for which the insurer will be charging a fee.

   Serial No.	Name of Endorsement	Documents Required	Duration	Fee Amount	Need for Inspection
   1.	Seating Capacity	RC copy (front + back)	10 Days	N/A	N/A
   2.	Personal Accident Owner Driver	Aadhar card + Driving License	10 Days	Rs 350-450 (depends upon the insurer)	N/A
   3.	Paid Driver	3 months’ salary slip of the driver	10 Days	Rs 50	N/A
   4.	Unnamed Passenger Cover	Copy of the RC (front + back)	10 Days	Rs. 50 for 1 lakh cover & Rs 100 for 2 lakh cover	N/A
   5.	CNG Addition External	Invoice of the CNG kit & RC copy (front + back)	10 Days	Rs 60+4% of the kit value	Required
   6.	CNG Addition Company Fitted	Copy of the RC (front + back)	10 Days	Rs 60+5% of the OD Premium	Required
   7.	Fuel Type	Copy of the RC (front + back)	10 Days	Short fall amount declared by the insurer	May be required
   8.	Cubic Capacity of the Car (CC)	Copy of the RC (front + back)	10 Days	Short fall amount declared by the insurer	May be required
   9.	Change in IDV	Copy of the RC (front + back) + Previous Year Policy	10 Days	Short fall amount declared by the insurer	May be required
   10.	Date of Manufacturing	Copy of the RC (front + back)	10 Days	Short fall amount declared by the insurer	May be required
   11.	Model & Variant of the Car	Copy of the RC (front + back)	10 Days	Short fall amount declared by the insurer	May be required
   12.	Period of the Insurance	Previous Year Policy	10 Days	Short fall amount declared by the insurer	May be required
   13.	Transfer of the Ownership	Updated RC/Form 29&30/Receipt/ + New Owner DOB, Address, Mobile No, Email Address, Nominee Name, DOB of the Nominee, Relation (in case PA cover is part of the policy)	10 Days	Rs 60 Admin Fee + Short fall amount declared by the insurer(if NCB or claim has been taken in the current policy)	Required

2. Non-financial Endorsement

   It refers to those modifications in the policy documents for which the insurer will not charge any fee and do the required changes.

   Serial No.	Name of Endorsement	Documents Required	Duration	Fee	Need for Inspection
   1.	Addition of GST No.	GST certificate	10 Days	N/A	N/A
   2.	Communication Address	Written Consent	10 Days	N/A	N/A
   3.	Date of Birth (DOB)	Written Consent	10 Days	N/A	N/A
   4.	Color Change of the Car	Copy of the RC (front + back)	10 Days	N/A	N/A
   5.	Email Address	Written Consent	10 Days	N/A	N/A
   6.	Chassis Number	Copy of the RC (front + back)	10 Days	N/A	N/A
   7.	Engine Number	Copy of the RC (front + back)	10 Days	N/A	N/A
   8.	Hypothecation Remove	NOC from the bank against loan	10 Days	N/A	N/A
   9.	Hypothecation Addition	Copy of the RC (front + back) + Load Declaration + Letter from Bank	10 Days	N/A	N/A
   10.	Insured Name	Copy of the RC (front + back) + Previous Year Policy	10 Days	N/A	N/A
   11.	Mobile No.	Written Consent	10 Days	N/A	N/A
   12.	NCB Certificate	Previous Year Policy + Sell Letter + NCB Declaration from Previous Insurer	10 Days	N/A	N/A
   13.	Nominee Details	Name + DOB + Relation with Written Consent	10 Days	N/A	N/A
   14.	Registration Number	Copy of the RC front + back (can be financial also)	10 Days	N/A	N/A
   15.	Salutation	Written Consent	10 Days	N/A	N/A

Final Words

A policyholder can request the endorsements by connecting with their insurer’s customer care team and submitting the required documents to substantiate those changes. However, the insurer will only make the necessary changes after checking the authenticity of the submitted documents.