Change Nominee Name in Your Bike Insurance
- Author :
- TATA AIG Team
- Published on :
You may be unaware that bike insurance protects you financially from third-party legal liability and bike damage during natural and man-made disasters. But did you know that it also provides a lump sum payment in the event of disability or death? Perhaps not. However, in order to obtain such benefits, it is crucial to introduce a nominee to your policy. The following article will walk you through every detail of a nominee and how to add or modify them to your existing policy.
What is a Nominee in Bike Insurance?
When you buy a new or pre-owned bike, the Motor Vehicle Act of 1988 requires you to purchase third-party bike insurance as well as personal accident rider cover. In case of a major road accident, if the rider or owner of the bike dies, the policy's personal accident cover will pay a lump sum to the nominee.
The nominee is the person whose name was listed as a nominee on the insurance document. Therefore, as a policyholder, you must provide the name of the beneficiary/ nominee at the time of purchasing an insurance policy for the bike.
The beneficiary is entitled to receive compensation in two circumstances. These are:
- In the event that the policyholder dies in a road accident involving the insured motorcycle.
- In case the policyholder files a claim but dies before the insurer pays out the compensation amount.
- Adding a nominee to the two-wheeler insurance policy helps your family overcome the financial difficulties that may arise when you are not around.
Who is Eligible to Become a Nominee for Your Two-wheeler Insurance?
According to Section 39 of the Insurance Act of 1938, you are allowed to choose any person you deem fit as your nominee. They can be:
Legal heirs: Legal heir includes your spouse or children.
Immediate family member: An immediate family member includes your siblings, parents, or other close family members.
Extended family member: Extended family members include cousins, close or distant relatives, or a friend. However, adding such a person as a nominee may necessitate prior approval from your insurer. You can add a nominee when purchasing a new policy, renewing an existing policy, or transferring a policy.
What Is an Endorsement In Two-wheeler Insurance?
The endorsement allows you to modify your existing bike insurance policy details. It is essentially a document that records the additions or alterations you made during the policy tenure. Whenever you want to rectify any error, change the coverage of your existing policy, or alter the name of the nominee, you will need your insurer to pass the endorsement. The endorsement can be passed during the first days of the policy year, the middle of the policy year, or at the time of renewal.
How to Add a Nominee Name to Bike Insurance?
Adding the nominee's name to your bike insurance is straightforward. It does not require you to visit your insurer in person with a large set of documents in the age of digitisation. You can introduce the nominee by following the steps below.
- Visit your insurer's official website or mobile portal and sign in using your login credentials.
- Navigate to the policy details section and select the "Edit" option.
- On the next page, select "Edit/Add Nominee" and add or modify the beneficiary details by following the instructions on the screen.
- Tap on "Submit", and the details will be updated to your policy document.
Mistakes to Avoid While Making a Nomination in the Insurance Policy for a Bike
Mistakes are common, but if not addressed promptly, they can cause issues during the claim settlement process. Here are some common nomination blunders to avoid.
Not updating the details: There might be a situation where the nominee you introduced earlier to your policy has died. In this case, you must update the information and provide a new nominee's name. Further, if you want to change the nominee, make sure to update the details accordingly.
Not informing the beneficiary: As a policyholder, you must always spare the time to notify the policy beneficiary that you have named him or her as a nominee on your bike insurance policy. Also, teach them about death benefits and the claim settlement process. It will help to speed up the claim settlement process.
Sharing incorrect information: Another common blunder to avoid is providing inaccurate information. Check the spelling and other details when mentioning the nominee's name. If the nominee's name on their identity proof differs from the one mentioned in the policy document, they will have difficulty receiving the compensation amount.
Is it Mandatory to Name a Bike Insurance Nominee?
No, nomination for bike insurance is not a compulsory process. Meanwhile, if you do so, your claim will be processed quickly, and the compensation will be paid to the nominee even if you die in a road accident. However, in the absence of a nominee name, your legal heirs will have to work hard to establish their legality as your heirs and obtain compensation.
Considering that your bike insurance nominee is entitled to compensation if you die in an accident, you must choose them with caution. Following your death, the nominee should be capable of caring for your entire family. If you do not name a nominee on your policy, your legal heirs will have difficulty receiving compensation. If you discover an error in the nomination details, take immediate action to correct it; otherwise, the incorrect information may result in claim rejection.
For all your bike and car insurance needs, visit Tata AIG, a name synonymous with trust. We offer all types of 2-wheeler insurance online, and the process of buying insurance is hassle-free. Also, if you ever need to file a claim, our team of experts will help you in the process. We have more than 7500 cashless network garages where you can get your bike fixed after any mishap, that too without paying anything out of pocket.