Everything About Bundled Plan for Brand New Car

What is Bundled Insurance?

Bundled insurance refers to a policy that combines two or more types of insurance coverages under a single premium. In India, it's often used for new vehicles, offering a long-term third-party cover with a shorter own damage policy. Bundled insurance simplifies policy management, ensures compliance, and offers cost-effective protection for specific durations.

How Does Bundled Insurance Work in India?

Bundled insurance in India is typically used for new car or two-wheeler purchases. As per IRDAI norms, it includes a 3-year third-party cover (for cars) and a 1-year own damage cover. This ensures legal compliance for a longer period while allowing annual renewal for the own damage portion. Bajaj Allianz General Insurance Company offers bundled policies with add-ons and access to 7,200+ cashless garages, simplifying your post-claim experience.

Types of Bundled Insurance Policies

• Motor Insurance Bundles: Long-term third-party + one-year own damage cover.
• Home + Contents Insurance: Covers both structure and content under one plan.
• Health + Accident Insurance: Combining hospitalisation with accidental death or disability benefits.
• Travel Bundles: Includes medical, trip cancellation, and baggage coverage in one.

Bundled products are often pre-designed, offering convenience but limited customisation.

Benefits of Bundled Insurance

• Long-Term Coverage: No need to renew third-party cover annually.
• Regulatory Compliance: Especially important for new vehicle buyers.
• Convenience: One policy, one premium, one renewal reminder.
• Cost Efficiency: Bundled deals may offer better pricing.
• Easy Management: Simplifies document tracking and claim processes.
• Add-On Flexibility: Most insurers offer optional riders like zero depreciation.

Also Read: Top 11 Car Companies in India in 2025

What is Covered in a Bundled Insurance Policy?

• Long-term third-party liability cover
• One-year own damage protection (for vehicles)
• Accidental damage or theft of insured vehicle
• Legal liabilities towards third-party injury/property
• Optional personal accident cover

What is Not Covered in a Bundled Insurance Policy?

• Damage from driving under the influence
• Normal wear and tear
• Electrical/mechanical breakdowns
• Commercial use under a private policy
• Claims beyond the policy period or coverage limits

Limitations and Exclusions of Bundled Insurance

• Fixed Coverage Duration: Third-party coverage is fixed for 3 years (cars), while own damage is for only 1 year.
• Limited Flexibility: You can’t easily change or cancel the third-party component mid-term.
• No Customisation in Pre-Packaged Deals: May not include all your preferred add-ons unless upgraded.
• Higher Initial Cost: Upfront premium may feel heavier than annual policies.
• Renewal Confusion: Misunderstanding may occur due to split validity—OD needs annual renewal.
• Not Ideal for Low-Usage Vehicles: Long-term third-party cover may be less relevant if your car usage is minimal.

Bundled Insurance vs. Standalone Policies

Regulatory Guidelines for Bundled Insurance in India

The IRDAI mandates bundled insurance for new vehicles—a 3-year third-party for cars and a 5-year for two-wheelers. This helps ensure long-term compliance and road safety. However, own damage can still be renewed yearly. Bajaj Allianz General Insurance Company follows these norms while offering flexible add-ons.

How Car Insurance Works in This?

In a bundled car insurance policy, the third-party component is locked for 3 years, giving you legal coverage without annual renewal hassle. The own damage section, however, must be renewed every year. Claims are filed separately based on which part of the bundle applies to the damage or incident.

Also Read: Advantages of Buying Your New Car’s Insurance Before Delivery

Conclusion

Bundled insurance offers convenience, compliance, and cost savings—especially useful for new vehicle buyers. While it limits flexibility, the long-term protection it provides simplifies ownership. With trusted insurers like Bajaj Allianz General Insurance Company, bundled policies come with customisation options and 7,200+ cashless garages, ensuring peace of mind on every drive.

FAQs

Q1. Are there any exclusions in bundled insurance policies?

Yes, exclusions like drunk driving, mechanical breakdown, or using a private car for commercial use still apply.

Q2. How does bundled insurance differ from standalone policies?

Bundled insurance combines long-term third-party with short-term own damage cover, while standalone policies allow yearly renewal of both.

Q3. What bundled insurance options does Bajaj Allianz offer?

Bajaj Allianz General Insurance Company offers bundled car insurance, two-wheeler insurance, and combo health plans with custom add-ons.

Q4. Is purchasing a bundled car insurance policy a good idea?

Yes, especially for new car owners. It ensures compliance and reduces the hassle of frequent renewals.

*Standard T&C apply

**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.

***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.

****Disclaimer: Vehicle specifications, features, and pricing may vary, and it is essential for readers to verify the latest information from authorised dealerships, manufacturers, or reliable sources before making any purchasing decisions.