Endorsement in Car Insurance

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Endorsement in Car Insurance

Have you recently changed your phone number or address and need to update the same in your insurance for a four-wheeler? Do you wish to transfer your car insurance policy to another insurer? All these changes or ownership transfers require insurance endorsement.

Before we get to the detailed policy endorsement meaning, let us discuss the importance of having a car insurance policy. Third-party car insurance is compulsory as per Indian law. However, having comprehensive insurance is recommended as it offers enhanced coverage.

Buying insurance for a four-wheeler online is simple. However, it is crucial to understand how car insurance with endorsements works and helps policyholders, and the impact of endorsement premium on the overall insurance premium.

Let us explore motor insurance endorsement below.

What is Endorsement Meaning in Insurance?

At times, your car insurance policy might include specific details that are not aligned with your personal or car information, resulting in claim rejections and other similar issues in times of emergencies.

To help with the same, car insurance with endorsements is necessary. The endorsement meaning in insurance refers to any change or amendment requested by a policyholder that an insurer then implements after mutual agreement.

In simple words, adding or reducing the coverage, deducting a few parts to lower the premium, or making changes to your personal information are all called endorsements. In addition, with insurance endorsements, you can make legally binding amendments to your insurance plan.

The types of endorsement in insurance include changes in vehicle details, policy terms, coverage, policy Insured Declared Value, etc. Let us discuss these types in detail below.

Types of Endorsement in Insurance

Here is the list of the car insurance policy endorsements that you can make:

  • Corrections or changes in the car engine number

  • Corrections or changes in the car registration number

  • Corrections or changes in the car chassis number

  • Corrections or changes in your address, name, email id, etc.

  • Inclusion of LPG or CNG kit

  • Corrections or changes in the seating capacity or the passengers who are covered

  • Corrections or changes in the cubic capacity of the car

  • Corrections or changes in the car’s make or model

  • Decreasing or increasing the voluntary deductibles in your car insurance plan

  • Corrections or changes in the NCB

  • Corrections or changes in the nominee’s details

  • Corrections or changes in the type of fuel of the car

  • Corrections or changes in the Insured Declared Value of the car

  • Corrections or changes in the manufacturing year of the car

  • At the time of car ownership transfer

  • If there is a mismatch in the amount of premium

  • In case of addition or elimination of any electrical accessories in your car

Frequency of Insurance Endorsement

You can make an endorsement in your car insurance policy in the mid-term, at the time of renewal of an expired policy, or when purchasing a new policy. Many people think that they can make endorsements as many times as they want to, but that is certainly not the case.

If you wish to make policy endorsements in car insurance, it is recommended that you do so only once or a maximum of two times a year. With multiple endorsements during the policy term, the policy is more prone to mistakes. This might not be favourable for the policyholder in any case, especially at the time of filing a car insurance claim.

Validity of Insurance Endorsement

The insurance endorsement becomes part of your insurance contract, which means that it remains valid for the term of your policy. If you wish to avoid making any more changes at the time of your policy renewal, the policy endorsements in your car insurance will be activated, and will remain so until the end of your next policy term.

In some cases, the insurance endorsements are added for a specific period as stated in the policy by the insurer. So, it is advisable to read all the terms and conditions mentioned in the policy before you make an endorsement or sign a contract.

Initiating Motor Insurance Endorsement

Here are the steps that you need to take for car insurance endorsement:

Call your insurance company and then confirm the process of making endorsements in your car insurance.

You might be asked to make the endorsement online or through an email or a written request for adding an endorsement.

Submit all the documents that are stated for making the insurance policy endorsements. For example, if you added CNG endorsement on the RC and want to include it in your policy, then you need to submit all the documents.

The application for endorsement will be verified.

After the verification, the endorsement will be approved, and the new premium will be calculated according to the policy endorsement in car insurance.

After this, you will be provided with an endorsement certificate.

The new car insurance policy reflecting the changes will also be issued to you.

Car Insurance Endorsement Charges

Certain changes based on the endorsement category might impact the policy premium. A change that increases or decreases the premium is often referred to as an endorsement premium.

Here are some examples -

Increasing Policy Coverage - Adding riders to the comprehensive car insurance policy or reducing the voluntary deductibles can increase the policy coverage, resulting in higher endorsement charges.

Reducing Policy Coverage - Opting out of certain coverage options and increasing the voluntary deductibles can result in lower premiums.

Changes Regarding Car Details - Based on the implementation of different security devices and other safety equipment, like anti-theft, such endorsements can reduce the policy premium. On the other hand, shifting to better car engines or sound systems can increase the insurance premium.

It is important to note that the insurance commonly determines the endorsement premium provider based on various factors, and not just the nature of endorsements.

Benefits of Car Insurance with Endorsements

Keeping your insurance for a four-wheeler updated with the necessary endorsements can attract multiple benefits, and some of them are as follows -

  • One of the most significant benefits of insurance endorsement is accuracy. With the correct endorsements in your car insurance policy, your policy will entail up-to-date information regarding your car and driving requirements. This can help with a smooth claim process and faster claim settlements.

  • With the correct endorsements in the policy, you can benefit from increased peace of mind. This is because your policy’s coverage will be aligned with your needs and budget, ensuring maximum financial protection in case of damage or loss.

  • With car insurance with endorsements, you have complete flexibility in adding and reducing the coverage of the base policy with a range of add-ons based on specific changing requirements. This allows you to make the most of your insurance at all times.

  • Along with accuracy, endorsements ensure your policy is compliant with the traffic rules and regulations. This will ensure reduced risks of claim denials and delays because of policy gaps and non-compliance.

Tata AIG Car Insurance Policy

Now that you know about the policy endorsement meaning, it is crucial to use them correctly after understanding everything about endorsements.

Moreover, the decision of which car insurance policy to invest in is also necessary as it determines the level of coverage available for protecting your car. Third-party insurance for a four-wheeler is mandatory to drive in India. However, it only protects from third-party liabilities.

A comprehensive car insurance policy, on the other hand, ensures that you are financially protected if your insured vehicle is involved in a road accident that causes severe damage or loss. Tata AIG offers ample customisation flexibility with its comprehensive plans to cater to an individual's specific needs.

The range of add-ons to enhance your base policy, online convenience for purchase, renewal, and claim requests, and cashless claims option at 7500+ network garages make us a top choice. So, insure your car and drive carefully on the Indian roads with Tata AIG.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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What if the insurer makes changes to my insurance document?

What if the insurer makes changes to my insurance document?


If you receive a notification regarding changes or endorsements being made to your policy document and you are not aware of it, it is essential that you immediately contact your insurer. Make sure that you have all the information regarding any insurance endorsements. If you learn about an endorsement and object to it, you should inform the insurance company about it promptly. Always obtain clarification regarding any endorsements being made to your car insurance plan to ensure there are no gaps.

Can an insurer deny an endorsement?


Depending on the nature of the endorsement in car insurance, the insurer might deny the request basis the risk profile attached to the required changes. For instance, if you wish to add a new driver to the policy but that driver has poor driving history, the insurer might deny this endorsement.

Do I need to update the insurer about all changes in my car?


For minor exterior changes or beautification of the car, the insurer does not necessarily require an update. However, changes that can impact the car’s performance and value must be notified, and an endorsement request is necessary.