How to Change Nominee Name in Your Bike Insurance Policy?
If you have a bike, it must be covered under a bike insurance policy. The bike owners must have third-party liability insurance to obey the traffic rules in India otherwise you will have to pay a traffic challan for violating this rule. However, a bike insurance policy provides you financial aid for any unforeseen accidents that resulted in any kind of damage or loss.Read more
The policy provides cover for a personal accident of the owner/rider of the bike. In case the owner/rider dies in the accident, the insurance company pays the compensation to the family. This compensation is paid to the nominee that you have mentioned as a nominee at the time of buying the insurance policy.
Now you must be wondering who is a nominee? Let us tell you.
Nominee of Bike Insurance
A nominee is a person who is assigned by the bike insurance policyholder who gets the claim or compensation amount if the policyholder dies. The nominee is also known as a beneficiary. The policyholder mentions the name while filling the form at the time of purchasing the insurance plan.
There are two situations under which the nominee receives the compensation amount. The first situation is when the policyholder does not survive the bike accident then the nominee will get the compensation amount. The second situation is when the policyholder dies after raising the claim and could not receive the amount. In this scenario, the nominee gets the compensation amount from the insurer.
Most people assign their spouse or kid as the nominee. The compensation amount serves the purpose of well-being of the deceased policyholder’s family.
Now another question that must be rising in your mind is that what if you want to change the nominee? Let us suppose that you purchased the bike when you were unmarried and made your brother or sister the nominee. Now that you are married and want to make your wife a nominee, then what would you do?
You can take the help of an endorsement and change the name of the nominee in your bike insurance policy.
The Endorsement in Bike Insurance
The endorsement in an insurance policy refers to any kind of change or addition you want to make to your existing policy. It is a document that keeps a record of any amendments that you make in your policy. It works as proof that you have made a change in the policy.
Here is an example, In case you have moved into another house and want to get it updated in the policy then your insurer will pass an endorsement to make the change.
Now, when it comes t changing the name of a nominee in your policy, you will have to ask your insurance provider to pass an endorsement. You can ask them to pass the endorsement at the time of renewal of the policy, the beginning of the policy year, or mid-year.
You might have to submit some of the documents in support as evidence to make the changes. But the insurer will not ask you to submit any document to change the nominee name because it is completely your decision.
Process to Change Nominee Name
The process to change the name of nominee in the insurance policy is easy. You only need to write an application to your insurance company requesting an endorsement and mention the name of the new nominee. You can send through the post, email depending on the company’s terms.
You won’t need any document in support to change the nominee's name, the insurance company will pass the endorsement. Also, you do not require your existing nominee’s consent to change before changing the name.
Types of Endorsement Available
There are several types of endorsement available. They are as follows:
- Address change
- Name Change
- Phone number change
- Bike’s chassis number change/correction
- Bike’s registration number change/correction
- Increase or decrease in deductibles
- Expired policy renewal
- Policy ownership transfer
- No claim bonus transfer
When you want to make any major change in your bike then make sure that you inform the insurer. This might impact your premium rates. In case your insurer finds out about it later, the insurer can reject your claim.
Wrapping It Up
Since the nominee assigned by you in your bike insurance gets the claim/compensation amount in case your untimely demise makes it a crucial decision. You need to make sure that you are assigning a trustworthy person as a nominee. You can assign your spouse, heir, so that the money goes in the right hands that can be used in the well-being of your dependents. If you feel like changing the nominee’s detail in the policy, you can ask your insurer to pass the endorsement and then make the changes. You can do it online sitting in the comfort of your home.