What is the need and benefit of adding a nominee to a car insurance policy?
Last Updated on August 23, 2022 by
Being insured is always good. For an average-earning person buying a car is a big deal. Hence one wants it to be protected from every possible damage. Car insurance can help you get protection against natural calamities, accidents, theft and many such unforeseen conditions. Nowadays, due to the latest technology, third party car insurance online is available at cheaper rates.
But people might miss filling in important details on the platform. Four wheeler insurance policies might have numerous details. It can have important information such as the vehicle registration number, information regarding the engine and even specific data that will help identify the vehicle. You can have numerous data about the policyholder. It includes age, name, and more, which helps identify the vehicle’s owner. Most car insurance policies have a policy nominee, but people go wrong in understanding the value of nominees.
Here in this article, we will tell you all about the importance of adding a correct nominee to your car policy.
To understand the value of a Car Insurance Policy Nominee, first, let’s understand
Who is a Nominee?
A nominee is a very common term used with most of the policies. It is similar in the case of a car policy. Basically, the nominee has two roles. The first will be to act as a person who, in your absence, will be liable to deal with all the legal procedures regarding the policy. On the other hand, the second role of a nominee will be to act as the beneficiary if the owner dies. Hence selecting the nominee becomes very crucial. You cannot risk someone with such a big role. People select their spouses or even their children as their nominees in most cases. But this is not always the best option to go for.
Need for a nominee in a Four wheeler insurance policy
No one can predict what life has planned for us. If you die in an unfortunate car accident, you will always want to leave a lot for your family. Choosing the correct nominee can help you in achieving this. Most insurance companies go through a long verification process to give the insurance claim. Such a process can be hectic and will create huge problems.
Hence selecting a nominee can be a great option to skip the tedious process. If you have already selected a nominee, all the insurance claims will automatically go to him, and it can help your family recover and get back to their lives. These days you can also have an option of third party car insurance online, which can help you speed the process of Car Insurance Policy.
Numerous benefits of a nominee
- The nominee will get the claim settlement on your behalf. If the policyholder, after raising an insurance claim, somehow dies due to a reason, the settlement amount will be given to the nominee.
- Personal accident cover, if you add the personal accident cover to your policy, then in a case of a permanent disability or in case of your demise, this cover becomes active, and all the compensation, in this case, will be deposite to the nominee’s account.
- Nominees also gets policy support if you are not there to enjoy it. You must remember that if a policy collapses, or somehow you land into trouble due to your policy, the nominee can also be blame. Hence the selection of a nominee becomes very crucial.
Nominee gets legally bound with the policy.
One of the most important factors to be consider is the fact that a nominee is legally attach to the policy. You cannot force someone to become your nominee. It will be the person’s choice to become the nominee for your policy. On your demise or absence, the nominee will enjoy the policy benefits, but the nominee will be consider responsible when there are legal obligations relat to the policy. A good option is to understand all the legal obligations by opting for third party car insurance online.
You can change your nominee
One of the main concerns regarding the nominees is that an individual can change a nominee? If you are also cornered regarding the topic, then be sure, as you can easily change your nominee’s name. Nowadays, in many policies, you can even have the option to select numerous nominees. It can help you in picking nominees according to the priority. In other policies, the nominees can have equal or unequal financial benefits. You can decide and allot the priority and preference.
Above in the article, we have mention all the benefits of adding a nominee to four wheeler insurance. These days there are many third party car insurances online, which can help in selecting nominees very easily. You must consider all these points before you finalize a nominee. Always remember that selecting a nominee is essential, and you can never miss out on doing so. It is an important part of a policy and will ultimately help you and your family.
Read More: What You Need to File a Car Insurance Claim Post-Accident