All You Need To Know About Car Insurance Nominee

Posted on: Aug 18, 2021 | 3 mins | Written by: HDFC ERGO Team

All You Need To Know About Car Insurance Nominee

In the event of an owner's untimely death, a nominee under auto insurance may increase the claim or amount of reimbursement. These are the advantages and requirements of a car insurance nominee that you should know about. First party or third party insurance for your vehicle protects you financially and relieves you of any anxiety in the event of an accident, theft, or natural disaster. Numerous important details, including the vehicle's engine, chassis number, and registration number to identify the vehicle, are included in the policy.

Who can be your nominee for car insurance?

Assigning a candidate is a standard procedure for each policy. An insurance policy's nominee serves two purposes: first, they can handle legal matters if the original policyholder is unable to do so; second, and perhaps more crucially, they become a beneficiary and are eligible to receive the payout if the policyholder passes away. Although most policyholders designate their spouses or heirs as car insurance nominees, you are free to designate any person you trust.

How to add a nominee to car insurance?

During the policy time, you can add a nominee when you purchase, renew, or make changes to your data for your auto insurance policy. In the event of your untimely death, the car insurance nominee is the person who would get the proceeds from your auto insurance policy. To ensure that the funds are used to support the family's needs, you might designate a reliable individual as your car insurance nominee—ideally a member of the family.

It is necessary to send an endorsement request letter to your insurer to modify the nominee under your auto insurance policy. Using their mobile app or online, you can designate someone as a nominee for your auto insurance. Notifying your insurance of any significant modifications to your vehicle can affect your premium. It's also crucial to designate a nominee to facilitate the claims procedure.

How to change the nominee's name in a car insurance policy?

Assume for the moment that you wanted to modify the nominee you named when you bought the policy from the insurance company.

• Fill out the nominee change form that you downloaded from the website of your insurance provider. Enclose a copy of the policy and any other necessary paperwork, then ship them to the insurance provider.

• Tell the insurance company you wish to update nominee data over the phone by calling their customer service number. You will receive a link to a form that you may fill out online and attach any necessary papers.

• Enter the portal of the insurance company and choose the car insurance nominee update option. After completing the upgrade procedure, download a new policy and fill out all the necessary information.

What documents are required to assign a nominee to a car insurance policy?

All you have to do is send your motor insurance a letter requesting an endorsement and include the new car insurance nominee's name. Depending on the conditions set forth by your insurance, you may submit the letter via email. The insurer will approve an endorsement on the receipt of the letter since no paperwork is needed to modify the nominee's name.

Benefits of adding a nominee for car insurance

The benefits of nomination in auto insurance are:

• Providing for your dependents: Purchasing personal accident insurance is required. This policy protects you financially in the event of a car accident-related permanent or temporary incapacity. The nominee would be compensated with Rs. 15 lakhs in the event of an unexpected disaster resulting from a vehicle accident.

• Get claim settlement while you're away: The nominee will get the claim settlement money if the policyholder passes away following the filing of a claim for an accident, auto theft, or third-party liabilities. In addition, if you are no longer in their presence, the nominee will receive Rs. 15 lakh in compensation under Personal Accident cover.

Is a nominee’s name a must for motor insurance?

In the event of your death, the legal heir would automatically inherit the auto insurance coverage. In certain instances, the insurer may find it difficult and time-consuming to prove the heir's validity. It is advisable to designate a person of your choosing to prevent such circumstances and facilitate the transfer of the policy to the nominee. Adding a nominee to your auto insurance policy is essential because of your untimely death the nominee will get the claim amount or reimbursement.

Conclusion

If you designate a nominee in your auto insurance policy, that individual will be eligible to collect benefits in the event of your death. The policy will also pay for repairs if your car is damaged through Own Damage coverage and compensation if you pass away through Personal Accident coverage.

As required by law, personal accident insurance is something you can add to when you buy or renew your policy. But you have to buy it separately, and if you own multiple vehicles, you only need to buy one PA cover. By designating someone for your auto insurance policy, you spare the legal heir the trouble of having to prove they are the policy's legitimate heir and guarantee they will get the essential benefits.

FAQ's

What occurs if the car insurance policy does not list a nominee?

In the event that you pass away without a nominee under your auto insurance policy, your legal heir will receive the benefits of the policy.

What happens if my auto insurance policy's nominee is deceased when my claim is settled?

In the event that the car insurance nominee listed in the insurance passes away before any claims are settled, the benefits or money will be paid to your legal heir.

Is it possible to name a kid as a nominee on my car insurance policy?

It is possible but, you must also name a guardian or appointee at the time of the minor's nomination.

Is my auto insurance still in effect if I die?

The auto insurance coverage is still in effect after your death until the end of the policy term. To get the advantages of the auto insurance policy, the nominee or the legal heir must transfer ownership of the policy to them.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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