Car Insurance Nominee: An Overview
Purchasing a car is a significant milestone and often an expensive investment. Therefore, car insurance can be of immense help in covering your vehicle from damage, loss, or theft. After all, no matter how careful you are on the road, things can sometimes go awry for no fault of your own. It is equally important to ensure that you pick the correct car insurance nominee to act on your behalf if something unfortunate happens. Let’s learn more about the role of a nominee in car insurance and why it is so important.
Who is a nominee in car insurance?
A nominee is a person picked by the policyholder to take up the responsibility for the administration of the motor insurance policy until a legal heir can take their rightful position. Basically, a car owner chooses a nominee to carry out any responsibilities regarding the insurance if the policyholder dies. While it is common to choose a family member as the nominee, it is not necessary that you do so. You simply have to choose a person whom you trust enough to care for your belongings if you are indisposed or in case of your untimely death.
What is an endorsement in a car insurance policy?
The best option is for you to have a nominee endorsed in your policy from the very beginning. When you are filling out the proposal form, insurance companies expect you to name a nominee. If you are opting for a car insurance policy online, then remember to mark a nominee before paying. If you are buying a policy from an agent, inform them of your decision to endorse a nominee. The agents will provide the nominee details and fill the relevant section. Do note that your decision is not permanent, and you can choose to change your nominee in the future.
How to change the car insurance nominee?
Before you change your car insurance nominee, keep a few points in mind. Firstly, pick a person you trust to act honestly and with integrity. Next, ensure that the person you select agrees to fulfill the role. Also, make sure you have all the accurate details regarding the identity and address of the nominee, especially if your and the nominee–s addresses are different. Lastly, ensure that the nominee and legal heir are different people and are aware of their roles.
In case of transferring the duty of a nominee over to another person, you can do so through various options at your disposal. You can download and fill out the nominee change form available on your insurers’ website. Attach the relevant documents and mail them to the insurance company. You can also contact customer service or update the nominee by logging into the insurance company’s online portal.
Finally, remember to always renew your car insurance policy on time every year to enjoy continued protection against unforeseen events.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.