How to Change the Name of the Nominee in Your Commercial Vehicle Insurance Policy?

If you use a commercial vehicle for your business, it must be covered under a commercial vehicle insurance policy. This is because buying at least third-party liability insurance is mandatory in India. In case the accident of the commercial vehicle results in the death of the driver/owner, the insurer pays compensation to his/her family. This compensation is paid to the legal heir of the insured until some nominee is mentioned at the time of insurance policy purchase. There can be times, when you may want to change the name of the nominee in your commercial vehicle insurance policy. If this is the case with you, here we are discussing the steps for the same.

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Who is Nominee in Commercial Vehicle Insurance?

A nominee is someone who is assigned by an insured under a commercial vehicle insurance policy to get the amount of claim or compensation in case of the demise of the vehicle owner. The nominee is also known as beneficiary and is assigned by the insured at the time of filling the proposal form while he/she purchases the policy.

The nominee receives the compensation or claim amount under two situations. First, when the policyholder dies in an insured commercial vehicle accident. In this case, the insurance company pays the compensation of death to the nominee of the policyholder. Second is the case when the insured dies after raising a commercial vehicle claim and is unable to get the amount of claim. In this situation, the insurance company pays the claim amount to the assigned nominee.

Generally, people assign their legal heir or spouse as the nominee. They use the compensation amount given by the insurance company for the well-being of the family of the deceased insured’s family.

Therefore, the nominee assigned by the insured and his/her legal heir can be the same person. It is easy to transfer the papers of car insurance policy to the name of the legal heir if he/she is the nominee as well.

But, what if a policyholder wants to change the nominee?

For example, a person has bought a mini truck for his small-sized business. Even though this truck does not go outside your city, but since it is used for business purposes, so you need to get its insurance under the commercial vehicle insurance category. Suppose, this person has bought the truck when he was unmarried and hence assigned his brother as nominee under his commercial vehicle insurance policy. However, five years later, he gets married, and now he wants to change the name of the nominee in this policy.

Well, one can do this, with the help of endorsement.

What is Endorsement in Commercial Vehicle Insurance Policy? 

An endorsement refers to any kind of additions or changes that are made to an existing vehicle insurance policy by the insured. It is the document that records all the amendments and changes that are made in the existing commercial vehicle insurance policy as per the request of the policyholder. It works as proof of all the agreed changes made in the commercial vehicle insurance policy.

How to Change the Name of the Nominee in an Existing Commercial Vehicle Insurance Policy?

The process for changing the nominee under the existing commercial vehicle insurance policy is easy. All you have to do is to write an endorsement letter to your commercial vehicle insurance provider. This endorsement request should have the name of the new nominee. You can send this letter through email or as per the terms of your insurance company. So, no documents are needed to change the name of the nominee, the insurance company will pass the endorsement request upon receiving this letter.

Moreover, you are not required to take the consent of your existing nominee before changing the nominee's name as it is solely your decision.

Summing It Up!

Assigning a beneficiary or nominee in your commercial vehicle insurance policy is one of the crucial decisions as the person will become entitled to get the compensation or claim amount in case of your untimely demise. So, it is essential to assign a person who is trustworthy as your nominee. You must prefer your family members as nominees so that the money that you get as compensation can be used to meet the financial requirements of your family.

If you want to change the details of the nominee in your commercial vehicle insurance policy, you can request your commercial vehicle insurance provider. This you can do by passing an endorsement request to the insurer, and the changes will be made. The endorsement process is almost the same for all the insurers and as mentioned above, but you must check with your insurer before doing it as it can vary. Despite that, it is always good to assign nominees wisely, so that you do not need to change them again and again.

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