Bundled Policy(1-year Own Damage + 3 Years Third Party Cover)

The bundled motor policy offers mandatory third party insurance for a longer duration and optional own damage cover for one year. One can pay a premium for (OD) own damage coverage for just one year and renew it annually. At the same time, it will offer third party coverage for 3 years in the case of cars.

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What is Bundled Motor Policy?

Since 2019, it has become mandatory to have third-party insurance for all vehicles in India. To make this affordable, IRDAI suggested insurance companies offer long-term insurance plans to customers. Now, there are different types of insurance plans available to people.

Other than third-party car insurance that only covers third-party liability in case of an accident, most people found comprehensive policy expensive and unaffordable as it is usually a multi-year plan offering coverage for a long duration.

This is where a bundled motor policy for private cars comes into the picture; the plan offers benefits of 1-year own damage + 3 years third party coverage and is more affordable than the comprehensive car policy. At the same time, it also provides protection against own damage instead of only third-party liability.

The plan is available for both two-wheeler and four-wheeler vehicles and is offered by several insurers in India.

Bundled Motor Policy for Private Car: What is Covered and What is Not Covered?

The bundled motor policy is an affordable way to insure one's vehicle without paying a lot at once. The exact benefits offered by 1 year own damage + 3 years third party insurance plan may vary from insurer to insurer. Some of the important inclusions and exclusions under this policy are given below:

Inclusions

In following events, the policy will offer benefits if damage or loss is sustained by the insured:

• Covers loss or damage to the insured vehicle due to various causes including accidents, natural calamities, theft, malicious activities etc.
• Covers any liability to third parties due to the bodily injuries, death, loss to property caused by the insured
• Will offer personal accident coverage for the owner-driver in case bodily injury or death is sustained by the owner of the insured vehicle.

Exclusions

In certain events, the insurer will not offer any coverage:

• If the accidental loss or damage has been caused outside the geographical area
• In case of damages caused while the insured vehicle was not being used in accordance with 'Limitations as to use' or driver by any other person than a driver stated in the driver's clause
• Any damage caused under the influence of alcohol or drugs
• Any loss or damage sustained directly or indirectly due to nuclear weapons material