Having a car and getting car insurance to safeguard your car is not enough and doesn’t end up here. You must make sure that you have a nominee for your car insurance. Now, who is a car insurance nominee and why do you need it? Read on to know the answer.
Nominee for the Motor vehicle insurance
Investing in a car is expensive, and providing financial coverage for the car with insurance is justified. Although having third-party car insurance in India is mandatory, comprehensive insurance ensures you are compensated if your car suffers any damage. Damages can be caused due to natural calamities, man-made calamities or even accidents.
Every car insurance policy requires a lot of information about the car and the policyholder such as engine number, chassis number, vehicle registration number. It covers details of the policyholder like age, name, address, identification details, along with all these details, one more piece of information that is compulsory is the nominee details. The nominee takes responsibility for your car and the other aspects in your absence.
Who Is a Car Insurance Nominee?
A nominee is identified by the policyholder who will take all the proceedings and every nitty gritty related to the administration of the car insurance policy. Though it is not essential to have a direct legal heir as a nominee but someone who is trustworthy and can take up the responsibility till the legal heir rightfully gets his position.
When you purchase a Personal accident cover along with your insurance, the nominee is entitled to receive all the monetary benefits in case of your demise. So choosing a trustworthy nominee is of utmost necessary if your legal heir is yet not mature enough to handle the responsibilities. Generally, a nominee is spouse, children siblings or parents.
When To Fill The Nominee Form?
You must fill the nominee details right from the start when you purchase the Motor vehicle insurance. Incase you are renewing or buying vehicle insurance online, fill the nominee proposal form before you reach the payment window. Incase if you are buying car insurance offline mention the agent or the insurer the nominee details or ask for the nominee details form.
The online method is easier and can be done in the comfort of your home without making any effort to visit the office or agent. Moreover, if your insurance provider has an app, it can be done by downloading the app on your mobile phone.
What Are The Documents Required To Assign a Nominee?
Traditionally assigning a nominee requires you to undergo a lot of documentation like filling out the nominee form, providing supporting documents like a copy of the car insurance policy, and identification details of the nominee and mail the same to your insurer. If you update your vehicle insurance online, you can choose the nominee’s name while renewing or buying the car insurance policy.
What Is The Process Of Changing The Nominee Name?
To change the nominee details, you can opt 3 methods:
First: Download the nominee form from the website of your insurance provider. Fill the required details, attach a copy of your car insurance policy along with the form and mail it to your insurer.
Second: Call the customer care executive of your insurance provider and update the nominee details. You may receive a link to update your nominee’s details and attach a soft copy of the required documents.
Third: You can complete the process of changing nominee details online by logging in to your insurer’s website, selecting the nominee update form, selecting all the required details, submitting your car insurance policy details and then downloading the updated car insurance policy.
What are the benefits of adding a nominee to the car insurance policy?
Support for your dependants: As per India Motor’s act every citizen having a vehicle must have a personal accident cover that provides financial support for the family in the absence of the policyholder. In an unfortunate incident, if the policyholder dies or suffers permanent disability, the dependants get the benefit of 15 lakhs under personal accident cover.
Continue with the claim settlement process: If the policyholder has raised a claim for the damages to the car and happens to die, the nominee can take the process ahead and receive the claim amount and also receive the 15 lakhs coverage.
In a nutshell
Although assigning a nominee to your car insurance policy is not compulsory as the legal hier automatically becomes the successor to the car insurance policy. But the process of assigning a legal heir involves many complicated procedures and time. To avoid such situations in your absence, it is wise to assign a nominee at the very start. Moreover, your family will benefit immediately, without any hassle of following up with the insurer.
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