Endorsement In Two-Wheeler Insurance: Meaning And Its Types

Posted on: Dec 27, 2022 | | Written by:

Endorsement In Two-Wheeler Insurance: Meaning And Its Types

Published on December 27, 2022. EST READ TIME: 4 minutes

Meaning and Types of Endorsement In Two-Wheeler Insurance

When you think of two-wheelers, they form the majority portion of the traffic these days. With the road conditions worsening and the government digging up roads for various repairs, you might have a fair idea of what can happen to your two-wheeler. Third-party two-wheeler insurance is also mandatory according to the Motor Vehicles Act, of 1988. Third-party insurance provides relief to the victims of the accident caused by the insured party. Ensuring proper traffic norms are followed and executed will reduce the chances of any accidents from your side. Insurance for your two-wheeler is as important as any other insurance. Your insurance plan might require you to revisit it and make changes. An example is increasing insured declared value(IDV), changes in personal information etc. This is when the endorsement option proves to be helpful. Let us know in detail what it means and how it is helpful.

Meaning of endorsement in two-wheeler insurance:

Any change or modification in the policy of insurance for your two-wheeler is called an endorsement. There may be many circumstances wherein there are changes to be made to an insurance policy. The changes in the insurance policy might be related to the insurance coverage or the personal information of the insured party. The information in the insurance policy should be up to date so that no hindrance is experienced while getting claims. Any document that helps to add or modify the details of an insurance policy, is called an endorsement.

Types of endorsements in two-wheeler insurance

Endorsements allowed under two-wheeler insurance are mainly of two types. These are namely

1. Changes in existing details of two-wheeler insurance

Any required changes can be made to the existing two-wheeler insurance documents. These changes are recorded, approved and then documented. After documentation, the existing policy details are replaced with new details using an endorsement. The changes permitted using endorsements range from changing the personal details of the insured party and also policy-related changes like an increase in IDV etc. Third-party two-wheeler insurance is also used by two-wheeler owners.

2.Additions to existing details of a two-wheeler insurance

Apart from making changes to the current policy document, additions can also be made to the existing policies. Certain specific clauses can be altered in an insurance policy and these altered clauses remain effective till the tenure of the insurance policy. In such cases, the entire policy document need not be changed or altered.

We take an example to explain the above two conditions. Suppose there is an individual who has opted for a two-wheeler insurance policy. After the policy is received, the name on the policy is not correct as per the identity cards provided. In this case, the individual can make an endorsement for a name change. This endorsement should be made to the insurance company and once accepted, it will be recorded in the policy document. This way the endorsement made is valid up to the tenure of the policy.

How to add a endorsement to your two-wheeler insurance?

A written request is essential for you, to add endorsement to your two-wheeler insurance with the insurer. If an endorsement request is sent to the insurance provider, the documents that are required should also be accompanying the request. An endorsement certificate will be issued by the insurance provider once the endorsement request has been reviewed and approved. The paperwork and formalities for each endorsement vary in nature and it is advised that you contact your insurance provider in advance.

Some of the acceptable endorsements in two-wheeler insurance are:

● A change in name or correction in the name.

● A change in contact details or rectification in the same.

● A change or correction in engine or chassis numbers

● A change or correction in the IDV of your two-wheeler

● Transfer of ownership of the two-wheeler

● Inclusion of a liquid petroleum gas kit

How many times are additions allowed on a two-wheeler insurance policy?

There is no upper limit to any additions or changes to be made to the two-wheeler insurance policy. You can add or change the details at any point of time in a policy year. But, it is advised that the number of changes made should be not more than once or twice every policy year. This will ensure that the policy claims are processed without any complications. Very frequent additions or changes may trigger problems related to insurance claims.

What are the requirements for a two-wheeler insurance endorsement to be valid?

After approval is given by the insurance company, the two-wheeler insurance endorsement is added to the policy document. The change is recorded and it is valid until any further changes are made to the policy document. The changes in the policy document are valid until the expiry of the policy. Any changes made to a certain portion of a policy document work in accordance with its validity.

Conclusion

According to the Motor Vehicles Act, of 1988, every two-wheeler owner must purchase third-party two-wheeler insurance. An endorsement is extremely beneficial for the owner of the vehicle. Any changes can be made at any time during the term of the policy and this helps the policy details to be updated all the time and minimum hassles at the time of claim dispersals. The insurance for two-wheelers can be amended at any time using an endorsement. There are cases when the endorsements have played a crucial role especially if there is a name change or any contact details to be updated. It can also be used for increasing the IDV of your vehicle. Buying two-wheeler insurance will help you save a lot of expenses which otherwise would be an out-of-pocket expense for you. With the advent of technology, buying insurance and even the process of endorsement have become very simple and convenient.

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

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