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Nominee in Car Insurance: Good to Know Facts on Nominee

Team AckoSep 2, 2021

A nominee is a person who receives the proceeds of the car insurance policy in case of your untimely death. Declaration of a proper nomination guarantees a smooth claim process. 

Your base car insurance policy should be purchased or renewed along with the mandatory Personal Accident (PA) cover (needs to be purchased separately). With the PA cover included in the base plan, your nominee will receive the benefits of your insurance plan in your absence. 

A nominee to your car insurance plays a vital role, especially during claim settlement or compensation stated in the policy. Here are some essential facts about a car insurance nominee and why you must assign a nominee to your car insurance policy.

Nominee in car insurance

Who can be your nominee in car insurance?

Under Section 39 of the Insurance Act, 1938, you (policyholder) have the authority to assign the nominee in the car insurance policy. The nominee will receive the coverage benefits of the insurance policy in case you are no longer around. 

Typically, a person nominates their spouse, children, siblings, or parents as the nominee in insurance. You can assign the nominee while purchasing, renewing, or changing details during the policy period.

How to add a nominee to ACKO car insurance?

The process to add or change a car insurance nominee has become faster and easier with the advent of digital technology in insurance. Online platforms such as the website and mobile app have made it easier for you to nominate a person without visiting a branch. At ACKO, you add a nominee to your car insurance policy through our website or mobile app.

Here are the steps to add a nominee to your ACKO car insurance.

  • Step 1: Access your ACKO account (via the website or mobile app) using your registered mobile number.

  • Step 2: Select the policy of your car and select ‘Add Nominee.’

  • Step 3: Enter a few details of the nominee, such as name, relationship, and date of birth, to add a nominee to ACKO car insurance.

How to change the nominee name in ACKO car insurance policy?

You have the option to add, edit or change the car insurance nominee name in your ACKO car insurance policy within the policy term. At ACKO, you can perform such activities multiple times through the online platform, avoiding visits to the branch. Here are the steps to change the nominee details in ACKO car insurance.

  • Step 1: Access your ACKO account via our website or mobile app through your registered mobile number.

  • Step 2: On your car insurance policy, click ‘Claim, edit, and more.’

  • Step 3: On the policy details page, select ‘Edit.’

  • Step 4: Select ‘Edit your nominee details’ and follow the instructions on the new page.

What documents are required to assign a nominee to a car insurance policy?

Traditionally, you had to submit the nominee change form, a copy of your car insurance policy, and supporting documents to assign, change or edit nominee details. However, that has changed with the digital infrastructure. 

Digital-first insurers such as ACKO have changed the way you update your insurance policy. At ACKO, there are no documents required to add, alter or edit nominee details. You can visit your ACKO account through our website or app to make the necessary changes.

Benefits of adding a nominee for car insurance

Nomination in car insurance serves the following benefits.

  • Supporting your dependents: It is mandatory to buy the Personal Accident cover that provides financial coverage to you in case of permanent/temporary disability caused by a car accident. In case any unfortunate mishap happens due to a motor accident, then the nominee will receive compensation of Rs. 15 lakhs (as per Personal Accident cover policy terms).

  • Receive claim settlement in your absence: If the policyholder dies after raising a claim for an accident, vehicle theft, or third-party liabilities, the nominee will receive the claim settlement amount. Besides, there would be a compensation of Rs. 15 lakh to the nominee under the Personal Accident cover if you aren’t around them anymore.

Is a nominee’s name a must for motor insurance?

If you were to pass away, the legal heir would be the natural successor to the car insurance policy. In a few cases, the process of establishing the legality of the heir can be cumbersome and time-consuming for the insurer. To avoid such situations, it is advisable to nominate a person of your choice so that transferring the policy to the nominee becomes easier. It is a vital decision to include a nominee in your car insurance policy since the nominee will receive a claim amount or compensation in case of your untimely death.

In a nutshell

Nominating a person of your choice as a nominee in a car insurance policy will enable the appointed person to receive the policy’s benefits in case of your demise. The policy will also cover the repairs in case of damages to your vehicle through the Own Damage cover, and compensation in case of your death through the Personal Accident cover.

The Personal Accident cover is mandatory as per law, and you can buy it while purchasing or renewing the policy. However, it has to be purchased separately, and you need to buy just one PA cover if you own more than one vehicle. By nominating a person for your car insurance policy, you avoid unnecessary hassles for the legal heir in proving they are the rightful successor to the policy and receive the required benefits or compensation without any problems.

Frequently asked questions

Here are some of the commonly asked questions about the nominee in a car insurance policy.

What happens if there is no nominee mentioned in the car insurance policy?

If your car insurance policy does not have a nominee, then the policy benefits or the compensation will be given to your legal heir upon your death. A legal heir can be your spouse, children, mother, or father to become a successor to the policy.

What if the nominee of my car insurance policy is not alive at the time of claim settlement?

If the nominee mentioned in the policy is not alive while settling any claims, your legal heir will receive the benefits or the compensation.

Do I need to send an application to change/add a nominee to ACKO?

No, you don’t have to send an application or visit a branch to make changes to the nominee of your car insurance policy. Simply access your ACKO account via our website/app to make changes to the nominee details. Once you have completed the required changes, ACKO will send a new policy document to you with the updated information.

Can a minor be assigned a nominee to my car insurance policy?

Yes, you can assign a minor as a nominee to your car insurance policy; however, you also have to appoint a guardian or appointee while nominating the minor to your car insurance policy.

Is car insurance valid after my death?

Upon your demise, the car insurance policy remains active until the end of the policy term. However, the nominee or the legal heir must transfer car insurance policy to their name to receive its benefits.

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CIN: U66000KA2016PLC138288

IRDAI Registration No: 157

Category: Non-Life Insurance

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