Nominee in Car Insurance

5 min read • Posted on 02 Sept 2024

The nominee is the person who is nominated to receive the proceeds of your car insurance policy in case of your untimely death. The claim process is ensured smoothly by the declaration of a suitable nominee. You must buy or renew the Personal Accident (PA) plan and your base car insurance policy. In your absence, your nominee will benefit from your insurance plan.

The nominee plays a vital role in your car insurance, especially when settling the claims or availing the benefits mentioned in the policy. The reasons you need to nominate a nominee for your car insurance policy are given below, along with other important information about nominees.

Who Can Be a Nominee for Your Car Insurance?

As per section 39 of, insurance Act 1938, the policyholder has the right to appoint a nominee in his car insurance policy. The nominee is the person who will receive the benefits of the insurance policy in case of the unfortunate demise of the policyholder.

Generally, a person names their spouse, children, parents or siblings as the nominee in the insurance. You can appoint a nominee while purchasing, renewing or changing the policy details during the term of the policy.

How to Appoint a Nominee to Your Car Insurance Policy?

With the introduction of digital technologies in the insurance industry, adding or changing a car insurance nominee has become faster and simpler. Now you can enroll someone without visiting the branch thanks to online tools like a website and mobile app. Below mentioned are the steps to add a nominee to your car insurance account:

• Visit the official website of the insurance company.
• Access your account by using your registered mobile number.
• Select your car insurance policy and select "Add Nominee".
• Enter the nominee's details such as Name, date of birth (DOB), and Relationship.
• Then, press the "Proceed" button to add a nominee to your car insurance plan.

How to Change the Nominee Name of Your Car Insurance Policy?

To change the nominee of your car insurance policy, you need to follow the below-mentioned steps:

• Visit the official website of the insurance company.
• Access your account by using your registered mobile number.
• Select your car insurance policy and click on "Edit".
• Edit your nominee details.
• Then, press the "Proceed" button to edit the details of your nominee.

Benefits of Adding Nominee to Your Car Insurance Policy

Below mentioned are some of the benefits of adding a nominee to your car insurance policy:

• Receive claim benefit in your absence
• Supporting the dependents

You are free to change your nominee at any time; You are not required to keep the same person in that position for the rest of the policy term. In some policies, you can choose more than one nominee, and each will receive the cash benefit equally or as per the percentage decided by the policyholder.

Conclusion

Anyone chosen by you can be appointed as a nominee in the car insurance policy, making them eligible to receive the policy's benefits in case of your death. Own Damage and Personal Accident Cover will pay for repairs in case your car is damaged and compensation for your demise.

As per law, it is mandatory to buy personal accident coverage when you buy or renew your insurance. If you have more than one vehicle, you only need to buy one PA cover, which will need to be ordered separately. By nominating a person for your car insurance policy, you avoid unnecessary hassle for the legal heir to prove that they are the rightful heirs to the policy and receive the required benefits or compensation without any issues.

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Disclaimer: The content published in this article is intended solely for the readers' informational purposes and should not be relied upon for personal, medical, legal, or financial decisions. It is advisable to seek advice from a qualified professional regarding specific concerns. The details provided regarding the plan are for reference purposes only. Please visit the insurer’s website for the latest updates on the plan. The company does not guarantee suitability, reliability, timeliness, or accuracy of the information, services, or any other aspects mentioned in this regard for any purpose. We do not endorse any insurance company or insurance product provided by any insurer.