Introduction
Many vehicle owners don’t realize that car insurance policies must always reflect the actual condition of the vehicle and its owner. Any changes — such as the owner’s name, vehicle usage, or specifications — that are not updated can cause major issues during a claim. This is where car insurance endorsement becomes crucial. Endorsement is the official process of modifying, adding, or correcting information in an insurance policy. Even minor oversights can result in claims being denied, even if the policy is still active.
Common Situations Requiring Endorsement
Some of the most frequent situations include:
- Change of vehicle ownership due to sale, transfer, or hire purchase settlement.
- Change of vehicle usage from personal to e-hailing or commercial purposes.
- Address changes, registration number updates, or correcting spelling errors in the policy.
Even small discrepancies can create problems during the claims process.
Risks if Endorsement Is Not Done
The main risk is claim rejection. Insurance can deny claims if policy information is inaccurate or does not reflect the actual situation at the time of an accident. Owners may also face additional costs or last-minute corrections that delay coverage.
Insurers can invalidate the policy if the owner makes major changes without proper endorsement.
How to Correct the Policy Properly
Endorsement usually starts by contacting the insurance company or agent. Vehicle owners must provide supporting documents such as the vehicle grant, IC copy, or verification letter depending on the type of change.
After the application, the insurer will assess the changes and notify if any additional charges apply. The insurer will issue a new policy or endorsement slip once the process is complete.
Key Steps & Tips
- Notify your insurer as soon as information changes occur.
- Prepare all required supporting documents.
- Review the endorsement slip to avoid errors.
- Keep a copy of the endorsement for future claims reference.
Conclusion
Lastly, car insurance endorsement is not just a formality; it ensures that your insurance policy remains valid and claimable. By updating information promptly and following the correct procedure, vehicle owners can avoid claim issues and protect themselves from unnecessary financial risks.
Read More:
