An endorsement in insurance is a written document issued by the insurer to modify, add, or remove coverage in an existing insurance policy. It is sometimes called a rider or policy amendment.
✅ Simple Definition
An endorsement is a formal change to an existing insurance policy, agreed upon by the insurer and the policyholder.
✅ Purpose of an Endorsement
- To update coverage without issuing a new policy.
- To add optional benefits or riders.
- To correct errors or update details in the policy.
- To reflect changes in risk or insured asset.
✅ Common Examples of Endorsements
1. Motor Insurance
- Adding a new driver to the policy.
- Adding coverage for accessories (like music system, fog lights).
- Changing vehicle usage (personal → commercial).
2. Health Insurance
- Adding a family member to the policy.
- Increasing the sum insured.
- Adding critical illness or maternity cover.
3. Property Insurance
- Adding coverage for natural calamities like floods.
- Updating the insured value after renovation.
4. Life Insurance
- Changing the nominee.
- Increasing/decreasing the sum assured.
✅ Key Points
- Endorsements do not require a new policy; they modify the existing one.
- They may increase or decrease the premium, depending on the change.
- Insurer issues a formal endorsement certificate as proof of modification.
✅ Example
- You have car insurance for ₹5 lakh.
- You buy additional accessories worth ₹50,000.
- You request an endorsement → insurer updates coverage and issues a new endorsement certificate.
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