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Long-term 3+3 motor insurance plans in India offer bundled own-damage and third-party cover, locking in savings, simplifying renewals, and rewarding safe driving.
News18
Authored by Paras Pasricha, Head, Motor Insurance, Policybazaar.com:
When it comes to car ownership in India, insurance has too often been treated as an afterthought, a compulsory certificate to tick off once a year rather than a shield that secures one’s financial well-being. Yet the cost of getting this wrong is steep. A missed renewal date leaves lakhs of vehicles on Indian roads exposed to penalties, legal trouble, and most importantly, the crushing financial liability of an accident. Against this backdrop, long-term motor insurance plans, particularly the bundled 3+3 model, are quietly emerging as a transformative solution, one that simplifies ownership, locks in savings, and brings much-needed stability to a space often plagued by forgetfulness and rising risks.
Understanding the 3+3 structure
At the heart of the long-term proposition is the bundled 3+3 plan: three years of own-damage cover purchased together with three years of third-party liability cover. This alignment ensures that both halves of a policy run concurrently, without the confusion of mismatched renewals that has historically tripped up vehicle owners. The third-party element is the non-negotiable piece, mandated by law and priced by the government through official notifications. Here, stability is built in, since no insurer can arbitrarily alter what the regulator sets. The own-damage cover, however, is where pricing is market-driven and shaped by factors such as vehicle type, location, claims history, and add-ons. By committing to three years upfront, car owners benefit from predictability in their premiums, insulating themselves against fluctuations that would otherwise play out year after year.
More than a matter of cost
The appeal of long-term policies is not just the discounts, though insurers do sweeten the deal with incentives that can range between 10 and 15 per cent. It is also about the structural efficiencies they deliver. When a motorist knows that coverage is secured for the next several years, the spectre of accidental lapses disappears. This is not a trivial concern: missing a single renewal date leaves a vehicle uninsured, exposes its owner to penalties, and can create inspection processes before cover can be reinstated. Long-term policies take this uncertainty out of the equation.
For new car buyers, especially, the bundled product offers a seamless transition into ownership. There is no need to remember two different timelines for liability and damage cover, nor to negotiate the gap between regulatory requirements and market offerings. In effect, it converts insurance from a yearly chore into a one-time, multi-year commitment that dovetails neatly with how people think about other large purchases.
The quiet advantage of NCB
One of the lesser discussed but most powerful incentives embedded in motor insurance is the No Claim Bonus (NCB). For every claim-free year, policyholders earn a reward that starts at 20 per cent of the premium and grows progressively to 50 per cent by the fifth year. Over time, this creates substantial savings for careful drivers. Long-term plans make this journey smoother, because the policyholder is less likely to disrupt the accrual of NCB through missed renewals or fragmented coverage. Moreover, with add-ons such as NCB protectors, even an unavoidable claim does not wipe out years of accumulated benefit. What emerges is a virtuous cycle: good driving habits reduce claims, claims reduce premiums, and the continuity of a long-term policy locks in these gains.
Stability in an unpredictable world
If anything, the case for long-term insurance is made stronger by the volatility of life on Indian roads. Accident rates remain stubbornly high, urban congestion pushes vehicles into frequent scrapes, and extreme weather events—from flash floods to landslides—are striking with increasing regularity. The financial consequences of being underinsured in such a landscape are devastating. A bundled long-term policy provides a stable, comprehensive layer of protection that is aligned to this reality. It is not merely a contractual safeguard but a form of risk management that resonates in households across income brackets.
The road ahead
As India’s automobile base expands, with millions of new cars hitting the roads every year, the need for insurance models that are both practical and protective will only intensify. Long-term plans, especially the 3+3 bundled structure, offer a template that balances regulation with market innovation. They protect households from unnecessary risk, reward safe behaviour, and eliminate the administrative burden that has too often left drivers exposed.
For Indian car owners, the choice is no longer between compliance and neglect. It is between a cycle of annual uncertainty and the assurance of long-term security. Seen in that light, the argument is unambiguous: long-term motor insurance is not just another option. It is the game-changer that every responsible driver should embrace.
It is authored by Paras Pasricha, Head, Motor Insurance, Policybazaar.com.
The views expressed in this article are those of the author and do not represent the stand of this publication.
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