Things You Need to Know About Endorsement in Car Insurance Policies

If you want to make amendments or addition to your existing car insurance policy, it can be done through an endorsement. This helps to improve the scope of the policy. IFFCO-Tokio allows car owners to make changes to their existing car insurance policies.

Here are some details about car insurance endorsement:

• You can use car insurance endorsement to delete, add, change or exclude coverage offered by the existing policy.
• IFFCO-Tokio issues endorsements when the policy is purchased, during mid-term of the policy, or at the time of car insurance policy renewal. You can always check the different types of coverage, and if you feel you need it as a part of your existing policy, IFFCO-Tokio will issue an endorsement so that it is part of your policy.
• The endorsement will stay in force until it expires. However, you have the freedom to renew the endorsement under the terms and conditions of the basic policy. To learn more about this, you can get in touch with IFFCO-Tokio and a customer service representative would be more than happy to explain the details.
• It is prudent to remember that endorsements have an effect on the premium. If you add to the coverage, your premium will increase. On the other hand, if you delete or restrict coverage, your premium will reduce.
• Usually, endorsements are issued by IFFCO-Tokio in the following cases:
  •  You have a life change, such as a change in geographical location or car ownership.
  • Your budget has undergone a shift.
  • You have installed a CNG/LPG kit in your car.
  • You are using a rental car and would like insurance for the vehicle.
• If an endorsement is made to your existing car insurance policy, IFFCO-Tokio will issue a new page, which is known as Endorsement Certificate. This page will highlight the changes made to the coverage. The original policy will remain unaltered.

There are primarily two types of endorsements. One is a premium-bearing endorsement and the other is non-premium bearing endorsement. If you are opting for premium-bearing endorsement, you will have to pay an additional amount and this means that your premium will increase. On the other hand, if you go with a non-premium bearing endorsement, it will reduce your annual premium.

If the car changes ownership and you install electrical accessories or add Personal Accident Cover to your policy, you will have to pay for premium-bearing endorsement.

Some of the events that necessitate premium-bearing endorsement include the following:

• Transfer of car ownership.
• Correction in the ex-showroom price if it is incorrectly mentioned in the car insurance policy.
• Adding CNG/LPG kit to your car.
• Adding Personal Accident Cover to ensure coverage to passengers.
• Removing an anti-theft device from the car, one that has been approved by the Automotive Research Association of India.
• Installing or removing electrical accessories.
• Installing or removing non-electrical accessories.
• Becoming a member or canceling your membership of an authorized automobile association like AAI or WIAA.
• Taking part in a rally.

In events like changing the details of the nominee, changing your contact number in the policy or correcting the car registration number in the policy, you will have to go in for a non-premium bearing endorsement. Some of the events that come under this category include:

• Correcting registration, chassis or engine number if it is mentioned incorrectly on the car insurance policy.
• Make changes in the type of customer if the same is mentioned incorrectly in the car insurance bought online.
• Correcting the name of the policyholder if mentioned incorrectly in the policy.
• Correcting the policyholder’s address, gender or city.
• Changing the name of the nominee in the policy.
• Changing the mobile number and/or contact details of the policyholder.

It is best to remember that for premium-bearing endorsements, you have to pay an additional amount, over and above the already paid premium with your car insurance online in India.
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