Nominee in Car Insurance
If you own a car, it must be covered under a car insurance policy, which provides you withRead more
Who is a Nominee in Car Insurance?
A nominee in car insurance is an individual the policyholder nominates to receive compensation in case of the policyholder's death or disability. While it is common to select a family member as the nominee, you can simply choose anyone you trust enough to care for your belongings if you are indisposed or in the event of your untimely death.
How to Add a Nominee in Car Insurance?
Earlier, adding a nominee to car insurance required the submission of a nominee form, supporting documents, and a copy of your car insurance policy. However, with technological advancements, modifying nominees has become easier and quicker. Here is the hassle-free process to add a nominee to your car insurance policy:
- Step 1: Visit your insurer's website to access your account dashboard.
- Step 2: Sign in using your registered mobile number.
- Step 3: Select your car insurance policy and click 'Edit.'
- Step 4: Provide your nominee details and proceed to update your policy with the nominee.
Benefits of Adding a Nominee in Car Insurance
Nominee in car insurance offers the following benefits:
- Financial support for your dependents: Adding a nominee to your car insurance ensures financial support for your dependents in case of your unfortunate death or disability. A car insurance policy financially protects you in case of car repairs and any injuries sustained.
- Smooth claim settlement in your absence: If the policyholder passes away after raising a claim for an accident, car theft, or any third-party liabilities, the nominee will receive the claim settlement amount.
What Happens When You Do Not Assign a Nominee in Car Insurance?
If you don't add a nominee to your car insurance policy, the following complications can arise:
- Delayed Settlement: Your car insurer may require legal verification to identify the rightful heir, leading to delay in claim settlement.
- Potential Disputes: Multiple family members might claim the benefits, resulting in disagreements and legal hassles.
How to Change a Nominee in Car Insurance?
Changing a nominee in your car insurance policy is a straightforward process. Simply write an endorsement request letter to your car 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's 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's name as it is your sole decision.
How to Check Nominee in Car Insurance?
You can check your car insurance nominee online via any of the following ways:
-
Policy Copy
Look at the hard copy or PDF of your car insurance policy. The nominee's details are mentioned on the first or second page.
-
Online Portal
Visit the official website or mobile app of your car insurance company or aggregator like Policybazaar.com, sign in to your account and view your active policy details, including nominee information.
-
Customer Support
Call your insurer's helpline or email them with your policy number to know your registered car insurance nominee information.
Nominee vs. Legal Heir in Car Insurance: What's The Difference?
A nominee in car insurance and a legal heir are not the same. Here's how:
| Aspect |
Nominee |
Legal Heir |
| Role |
Custodian who receives the policy benefits |
Lawful owner of the vehicle and deceased's assets |
| Who appoints? |
The policyholder, during policy purchase or renewal |
Determined by a valid Will or succession laws |
| Legal rights |
May not have claim over money |
Has a rightful claim over the deceased's assets |
So, if the policyholder has named a nominee, car insurance and ownership are transferred to the nominee after their demise. If there is no nominee, ownership passes to the following relationships who qualify for legal heirs as per the applicable succession laws:
Spouse
The surviving husband or wife generally becomes the legal heir. If named as the nominee, the car insurance transfer is simpler.
Child
A child may inherit the vehicle and car insurance policy under natural succession. If there are multiple children, the transfer depends on the will or applicable succession laws. However, if only one child is named as the nominee, the policy and vehicle ownership transfer is simpler.
Wrapping Up
Assigning a nominee in your car insurance policy ensures that your dependents receive financial assistance in unforeseen circumstances. You need to periodically review and update nominee details to avoid complications and ensure that your chosen nominee will stay protected in your absence.
