News Karnataka
Wednesday, October 20 2021


Changing the Nominee Name in Car Insurance


Changing the Nominee Name in Car Insurance

Anybody who has a car must own car insurance. In India, as per the Motor Vehicle’s Act, 1988, all vehicle owners must at least own third-party insurance. When a person buys a car insurance policy, they must choose a nominee. In case there is an accident that causes the demise of the policyholder, the nominee will be given the claim amount or death compensation. Let us understand in detail the role of the nominee and how to change the nominee.

Who is a Nominee

A nominee is also known as the beneficiary. This is a person assigned by the policyholder while filling the proposal form. The nominee will get the claim amount after the policyholder’s demise. They can receive the claim amount under the following circumstances:

  • In case of the demise of the policyholder in an accident, the nominee receives death compensation
  • If the policyholder passes away after raising a claim and the claim process is not complete, the nominee will receive the claim amount

In case the nominee is not assigned, the policyholder will receive the amount. Making one’s legal heir the nominee is a wise choice. In many instances, one might want to change the nominee to somebody else. For example, if a person’s nominee is their sibling and subsequently they get married, they might want to make their wife/child the nominee. To make any changes in the insurance documents, one must do the following:


This refers to any changes or additions made to an insurance policy. This document records all changes/amendments done to the existing policy. Some endorsements affect the cost of premium rates. For instance, if you purchase a CNG kit for your car, the endorsement can increase the premium cost. Changing the nominee will not affect the premium costs. Here is what one must do to change the nominee:

  • The policyholder must first write an endorsement request letter addressing the motor insurance company
  • They must mention the preferred nominee in the letter
  • The letter can be sent via email depending on the terms of the insurance provider
  • One may request the insurer to pass an endorsement at the start of the policy, mid-year or during renewal
  • In most cases, the policyholder is not required to submit documents supporting evidence of the nominee but, in many cases, if documents are asked, one must be ready to submit them
  • Once the motor insurance company passes an endorsement, changes will be made in the documents

Points to Remember

  • A policyholder can appoint more than one nominee, specifying the share of each nominee
  • The nominee must be someone that the policyholder trusts and is best if they are their immediate family
  • A minor who is a nominee must have a custodian appointed to them. The minor will not receive any claim amount if there is no custodian
  • Details of the nominee must be updated. Failing to provide correct details can lead to complications for the nominee
  • Note that insurance companies do not disclose the nominee to anybody and it is safe
  • One does not require the consent of the previous nominee to change to another nominee

Insurance is a vital part of owning a car. One would need to continue to pay regular premiums to maintain a policy so, in case of the demise of the policyholder the nominee should rightfully avail the claim amount/compensation. Click here to learn about various policies available!


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