As a vehicle owner, ,you are required by law to own a a motor insurance policy. Failure to do so might get you fined by the authorities. Apart from meeting the legal requirements, the policy also comes in handy to provide financial coverage for repairs. However, that benefit does not apply to third-party motor insurance. On the other hand a comprehensive insurance plan provides financial coverage for own damages.
The policy also comes equipped with a personal accident cover. This cover provides coverage of up to ₹15 lakhs in the event of an accident that may result in injuries, disabilities, or even death. In such situations, the compensation is paid to the dependents of the policyholder.
Who is a nominee in motor insurance policies?
A nominee is an individual whom the policyholder assigns to receive compensation in the event of his/her unfortunate demise. Hence, the nominee is also the beneficiary of your insurance plan. You can appoint a nominee at the time of purchase of your bike insurance online.
Generally, it is assumed that the legal heir will be the nominee. However, this isn’t mandatory for the policyholder. You can name any person can be named as the nominee in the motor insurance
policy. This person shall be responsible for receiving any compensation as well as carrying out necessary proceedings of the insurance plan.
The concept of nominee exists so that the insurance company does not have to find the appropriate receiver in the event of an unfortunate accident. Thus, you are required to appoint a nominee when buying their car/bike insurance plans
Is a nominee a must for motor insurance?
While the legal heir is the natural successor to a car insurance policy, establishing their legality can be a complicated process. Thus, nominating a person of your choice can make transferring the policy to the nominee much easier. Including a nominee in your car insurance policy is a vital decision. The nominee will receive the claim amount or compensation in case of your untimely death.
Benefits of nominating a person for car insurance
Adding a nominee to your car insurance policy provides the following benefits:
- It supports your dependents by providing financial coverage in case of permanent or temporary disability caused by a car accident.
- If you were to pass away after raising a claim for an accident, theft, or third-party liabilities, the nominee would receive the claim settlement amount. Moreover, the nominee will also receive compensation of up to ₹15 lakhs under the Personal Accident cover policy terms.
Can you change your nominee in your motor insurance policy?
As mentioned, the nominee can be someone else other than your legal heir. Thus, you have the provision of changing your nominee in your motor insurance policy. Using the nomination facility ensures a simple and straightforward process of changing the nomination. This nomination facility not only allows you to change the nominee but also other policy details, such as your address, contact details, any modification in your vehicle, etc.
How to change a nominee using an endorsement facility?
A written request must be made to the insurance company, mentioning the details of the new nominee. Depending on your insurer’s procedure for endorsements in the plans, the process might differ. It can be done either by sending an email or a written request via post. You are not required to provide additional documents for evidencing such a change in the nomination of your insurance policy.
Since naming a nominee is important as they are the person who receives compensation after the policyholder, it is essential to keep it updated at all times. Make sure to use the endorsement facility wisely to stay on top of the nomination in your insurance policy. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
What documents are required to change a nominee in car insurance policy?
Usually, changing a nominee in your car insurance policy requires submitting the following documents:
- Nominee change form
- Copy of your policy
- Supporting documents
However, insurers with a great digital infrastructure have simplified the process. With such insurers, you can easily update your nominee details by visiting your account on their website or app. This process would require little to no documentation.
Frequently Asked Questions
· What happens if we don’t mention a nominee in car insurance policy?
If you don't mention a nominee in your car insurance policy, the claim settlement amount will be given to your legal heirs. The process of establishing the legality of the heirs can sometimes be bery complicated. Hence, it is advisable to nominate a person of your choice to avoid any complications.
· How should I handle a claim settlement if the named nominee is deceased?
If the named nominee in your car insurance policy
is deceased, the claim settlement amount will be given to the legal heirs of the policyholder. However, it is advisable to update the nomination in such a scenario.
· What happens to my car insurance after I die?
After your death, your car insurance policy will be transferred to your legal heirs. If you have nominated a person of your choice, the policy will be transferred to the nominee.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.