If you are looking to change nominee details, here we explain to you how you can do so.
A bike insurance policy safeguards you against damages caused to your bike as well as that of a third party. In case of your untimely demise caused due to an accident, the policy compensates the nominee. Hence, it is important that you don’t miss out on adding or updating nominee details in your bike insurance policy. If you are looking to change nominee details, here we explain to you how you can do so.
First, let’s under who is the nominee or beneficiary?
In India as per the law, you must buy third party insurance and personal accident cover. In the event of an insured person’s demise caused due to an accident, the nominee or beneficiary mentioned in the policy is entitled to receive coverage. When buying a bike insurance plan, it is necessary that you don’t miss out on mentioning nominee details.
Scenarios under which the nominee receives compensation amount
- In case of death of the policyholder due to a bike accident
- In case of death of the policyholder after raising the claim and not receiving the compensation amount
One can choose their spouse, kid, siblings or parents as nominees and the compensation amount received from the company can help in providing financial support to the family of the policyholder.
If you want to change nominee for your insurance policy then you can easily do so by following the below process.
Procedure to change nominee name
Changing the name of the nominee in the policy is a simple process. All you need to do is file an application, asking for endorsement i.e. change in nominee details. The application should also mention the name of the new nominee. The application for change in nominee detail can be made online or offline depending on the insurance company’s terms and conditions. You don’t need to provide any additional documents to the insurance company for changing the nominee. Also, approval from the existing nominee is not required.
On submission of the application, the new nominee details are updated usually within 7 days.
Common Mistakes Made at the time of Policy Nomination
Any mistake in the policy nomination can make it difficult for the nominee to claim compensation. Below given are a few commonly made mistakes that you should avoid.
Not updating nominee details
Ensure that nominee details are updated at all times. At the time of the new policy purchase or renewal, don’t miss out on updating the details. In case the nominee dies during the policy period, immediately get the new nominee details updated in the bike policy.
Inform the nominee
Ensure that you inform the nominee about the nomination as a nominee who is unaware would not be able to claim the compensation amount.
Incorrect nominee details
When entering nominee details, keep in mind that the name is error-free and is similar to that mentioned in the nominee’s address and identity cards. Wrong spelling or incorrect relationship information can even lead to claim rejection.
It is critical to name the right person as a nominee since the compensation amount is given to him/her. You can name your spouse, kids, parents or any other trustworthy person as a nominee who you know would be able to take care of your family in your absence. And in case you don’t mention the nominee's name, the compensation amount is given to the legal heir.
Also Read: Difference Between Online and Offline Bike Insurance Purchases
