Endorsement in Bike Insurance Policy: A Comprehensive Guide

When you start earning, there might be different things on your wish-list you may want to procure. Furniture, a new electric appliance, or new clothes may be some of the common items. A common feature on a wish list might be a vehicle, a four-wheeler or a two-wheeler.

What is an Endorsement in Bike Insurance Policy?

An endorsement is a document that amends the terms and conditions of an existing insurance policy. It is a written agreement between the policyholder and the insurance company to include/exclude specific terms and conditions or make changes to the existing ones. In the context of bike insurance, an endorsement can be used to modify the details mentioned in the policy, the premium amount, or other conditions of the policy.

Why are Endorsements important?

Endorsements are essential in a bike insurance policy for various reasons, some of which are mentioned below:

1. Customization

An endorsement allows the policyholder to customize their insurance policy as per their requirements. For example, if a policyholder wants to include/exclude add-ons, or increase/decrease the IDV of their bike, they can do so with an endorsement *.

2. Flexibility

An endorsement provides flexibility to the policyholder to make changes in the policy as per their changing needs. For instance, if a policyholder relocates to a new city, they may want to change their policy's address. This can be done through an endorsement *.

3. Compliance

There may be times when the policyholder needs to comply with legal requirements or regulatory mandates. For instance, if the government mandates the inclusion of a personal accident cover in bike insurance policies, the policyholder can comply with the mandate by adding an endorsement to their existing policy *.

Types of Endorsements in Two-Wheeler Insurance

Some of the common types of endorsements in bike insurance policies are as follows:

1. Add-on Cover Endorsement

This endorsement allows the policyholder to add additional coverage to their existing policy. For example, if the policyholder wants to include zero depreciation cover, they can do so by adding an add-on cover endorsement  *.

2. Exclusion Endorsement

This endorsement excludes a particular coverage from the policy. For instance, if the policyholder has a pre-existing condition, the insurance company may exclude coverage for that condition from the policy  *.

3. Change of Address Endorsement

This endorsement allows the policyholder to change the address mentioned in the policy. This is useful when the policyholder relocates to a new city *.

4. Change of Vehicle Endorsement

This endorsement allows the policyholder to transfer the existing policy to a new vehicle. This is useful when the policyholder sells their existing vehicle and buys a new one *.

5. Change of Name Endorsement

This endorsement allows the policyholder to change the name mentioned in the policy. This is useful when the policyholder gets married and wants to change their last name *.

How Frequently Can You Request Endorsement for Two-Wheeler Insurance?

You can request an endorsement for your bike insurance as often as needed, depending on the changes in your policy. Common reasons for endorsement include updating the bike’s model, adding a new rider, changing the address, or modifying the coverage. Insurance providers allow multiple endorsements during the policy period, but each request may come with administrative fees. It is important to ensure that all changes are properly documented to avoid any complications during a claim. Always consult your insurer to understand the specific terms and conditions related to endorsements and the frequency allowed. Also Read: How To Transfer Bike Insurance To New Owner

Validity of Two-Wheeler Insurance Endorsement

1. Duration: The validity of an endorsement depends on the type of modification made to the policy. Typically, an endorsement is valid as long as the original policy is active, provided the changes are accurately recorded by the insurer.
2. Notification Requirement: Once an endorsement is made, the insurance company will update the policy document with the revised details, making the endorsement valid immediately after the modification.
3. Revalidation: If your two-wheeler insurance policy is renewed, you must ensure that the endorsement is included in the renewal. This can be confirmed by checking the updated policy document, ensuring it reflects the changes.
4. Expiry of Changes: In some cases, certain endorsements may have a limited period of validity, such as coverage for temporary accessories. It’s important to check with the insurer to verify how long the endorsement will remain valid.

Impact of Endorsements in Two-Wheeler Insurance Premium

1. Premium Adjustments: Endorsements can impact your premium by increasing or decreasing it, depending on the nature of the change. Adding coverage for valuable accessories or riders may raise the premium, while some changes, like removing coverage, may reduce it.
2. Customization Costs: If the endorsement involves adding coverage for customized parts or high-value accessories, expect a potential increase in your premium due to the added risk.
3. No Impact for Minor Changes: Minor updates such as changing the name or address generally do not affect the premium.
4. Long-Term Effect: Frequent endorsements, especially those increasing coverage, may lead to higher overall premiums over time. It’s important to assess whether the added coverage is worth the increased cost.

Other benefits of bike insurance

Other than the benefit of endorsement your insurance policy can help you take advantage of the financial coverage it provides to you and your bike. If your bike were to get damaged in an accident, the repairs required could be extensive and could cost you a lot. With the help of two-wheeler insurance, you might not have to pay out of your pocket. When you file a two-wheeler insurance claim, the insurance company covers the cost of repairs *. Alternatively, if your bike causes damage to a third-party vehicle, the policy will cover the cost of damages. If there are any injuries caused to an individual or if someone were to pass away, the financial and legal liabilities associated with it are also covered by the policy. You also get added coverage with add-ons such as zero depreciation cover, engine cover, key replacement cover, and roadside assistance *. It is important to remember that the policy is mandatory under the Motor Vehicles Act of 1988. Not having a policy for your bike could lead you to pay fines. If you do not already have a policy, you can buy even it online. Before you buy the policy, make sure to use a bike insurance calculator  to get a quote for the policy as per your needs.

Conclusion

The above information about endorsement can come in handy if you need to change any important detail which is incorrect on your insurance policy. You can make an endorsement during your existing policy term and not wait till you. Also Read: Common Mistakes to Avoid When Renewing Bike Insurance

FAQs

Is there a time limit to make a two-wheeler insurance endorsement?

There is generally no specific time limit to make an endorsement in a two-wheeler insurance policy, but it should be done before any changes to your bike or personal details. Ensure that the endorsement is added before the policy renewal or during the policy’s active period.

Is it possible to make an endorsement in my Third-party Bike Insurance Policy?

Yes, endorsements can be made in third-party bike insurance policies. However, they are typically limited to modifications such as changes in the bike's details, rider information, or additional coverage like personal accident cover, as third-party policies mainly cover liability.

Are there any charges to get my two-wheeler insurance policy endorsed?

Charges for an endorsement may apply depending on the nature of the modification. Some endorsements, like changing personal details or updating the vehicle’s registration, may be free, while others, like adding coverage for accessories or modifying policy terms, may incur a fee.

Why is endorsement required?

Endorsements are required to update or modify the terms of your two-wheeler insurance policy. They allow you to customize coverage based on changes such as adding new accessories, updating personal details, or adjusting the policy as per legal or personal requirements.

What is the purpose of an endorsement?

The purpose of an endorsement is to officially modify an existing two-wheeler insurance policy, adding or removing coverage, updating details like the bike’s specifications, or making necessary adjustments based on the rider’s needs or regulatory requirements.

What is the validity of endorsement?

The validity of an endorsement lasts as long as the original insurance policy is active. Once an endorsement is made, the changes become part of the policy until renewal or until the policy expires, at which point the endorsement must be reviewed for continuation. *Standard T&C apply 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.