A car is a substantial investment and hence insuring it with the right car insurance policy is a smart move. While the legal requirement, as per the Motor Vehicles Act, requires one to buy an insurance plan, it has other benefits too. Protection from theft, natural calamities, man-made events and even repairs for accidents and protection against third-party liabilities are some of its benefits. With a car insurance policy, any financial stress arising due to these events can be kept at bay.
A car insurance plan contains various important details. These details are vehicle-related as well related to the policyholder. Vehicle information includes engine capacity, chassis number, vehicle’s registration number, engine number and more. Personal details of the policyholder include name and address. But apart from that, it includes one important detail—nominee of the policy.
Who is the nominee in a 4-wheeler insurance plan?
The nominee of the 4 wheeler insurance plan is the person who is responsible for administration of the different aspects of the car insurance policy. Such appointed nominee comes into the picture when the policyholder is indisposed or after a demise. It is generally assumed the legal heir is the nominee however, it is not necessary for a legal heir to only be one. It can be any person appointed by the policyholder who shall be responsible for carrying out all proceedings related to car insurance.
The concept of nominee exists to identify a person with whom the policyholder can entrust. Any unfortunate accident of the policyholder resulting into death can mean legal heir being the rightful owner of the compensation. But it can be tiresome to identify who is such rightful legal owner. Thus, the concept of nominee exists. This makes it easier for the insurance company to pay the proceeds and support the beneficiaries.
What are the benefits of appointing a nominee in a car insurance policy?
Making a nomination in the car insurance plan has the following advantages:
- Accepting the insurance claim in the policyholder’s absence: A nominee is the rightful owner of the insurance claim proceeds as such person is selected by the policyholder at the time of buying the insurance plan.
- Support to the dependents: With a personal accident cover included in a comprehensive policy, the proceeds during the death or disability can be passed on the dependents through such designated insurance nominee.
* Standard T&C Apply
Can the nominee be changed?
The nominee can be appointed at its initial purchase and can be changed subsequently during the car insurance renewal online. It is possible using the endorsement facility where policyholders can amend details to keep the policy information up to date. For instance, any modification to the car can be reported using such endorsement facility. While a few alterations require submitting documents evidencing such change, it is not a requirement when changing the nominee.
A simple written request to the car insurance company requesting a change in the nominee is all that a policyholder needs to do. Such request can be via a physical letter or even an email from the registered email address.
These are some of the thing to know about the nomination process in a car 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.