In India, every vehicle owner is legally required to have third-party car insurance to drive on the roads. Choosing the right insurance plan is crucial, and a comprehensive car insurance plan can simplify the process by providing both own damage and third-party liability coverage. This article guides you through the aspects of a bundled car insurance plan.
All-Inclusive Plan For A New Car
Bundled plans were introduced for vehicles sold after September 1, 2018, following the mandate of the Insurance Regulatory and Development Authority of India (IRDAI). Two options were provided: a long-term insurance policy with three or five years of damage coverage and bundled insurance. The bundled option included one year of own-damage coverage and three years of mandatory third-party liability insurance for cars (five years for two-wheelers). The consumer could renew own-damage coverage annually. You can utilise a car insurance premium calculator to estimate the costs of premiums to be paid. #
IRDAI’s initial requirement led to confusion and potential misinformation by insurance salespeople. However, the authority intervened, stating that insurance companies would offer own-damage coverage for a single year starting August 1, 2020. The mandatory three to five years of third-party liability insurance remained unchanged. #
Coverage Of Bundled Insurance Plans
A bundled car insurance plan encompasses various coverage aspects:
- Own Damage Coverage: The insurer covers damage to the insured vehicle due to theft, fire, accidents, and natural disasters. *
- Third-Party Liability Cover: Losses to third parties’ assets or individuals are protected. This includes third-party property damage, bodily losses, or accidental demise. *
- Personal Accident Cover: Medical expenses for the insured vehicle’s driver or policyholder in case of physical harm are covered. Compensation is also provided in case of the driver’s demise. *
Exclusions From Bundled Car Insurance Plans
Understanding what a bundled car insurance policy doesn’t cover is as important as knowing the inclusions. Some typical exclusions include:
- Damage outside the insurance plan’s geographic boundaries.
- Harm to a third party due to illegal driving or exceeding permitted limits.
- There is no coverage for driving without a licence.
- Exclusion of damages or injuries resulting from driving under the influence.
- There is no coverage for losses caused by nuclear weapons effects.
See also: On The Road With EMI: Tips For Buying A Bike On EMI
Advantages Of Bundled Insurance Plans
Bundled car insurance plans offer several advantages:
- Convenience: The extended coverage period eliminates the need for frequent car insurance renewal, simplifying the insurance process and reducing paperwork.
- Economical Choice: Bundled plans provide dual coverage at reasonable premium rates, offering a cost-effective solution for policyholders.
- Settlement Plan: Combining comprehensive car insurance with third-party liability and vehicle damage protection, bundled plans offer a comprehensive coverage package, ensuring three years ofthird-party car insurance online coverage and one year of own damage coverage. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Understanding bundled car insurance plans, offering comprehensive coverage and financial security, is vital for Indian vehicle owners. Consider individual needs, usage patterns, and policy terms carefully. Regular reviews and updates ensure alignment with changing circumstances. With the right bundled plan, drivers can confidently navigate the roads, knowing they have robust protection. Stay informed, diligently assess needs, and choose a bundled car insurance plan for a secure, worry-free driving experience.
*Standard T&C Apply
#Visit the official website of IRDAI for further details.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
