Bharat Griha Raksha – Bharat Griha Raksha is new initiative by IRDIA. After launching standard term insurance and health insurance policy, Insurance Regulatory and Development Authority of India (IRDAI) announced a standard home insurance policy. The guideline for the standard home insurance policy is issued by IRDIA on 4th January, 2021.
The policy Bharat Griha Raksha is meant for home building and home content. The product of standard home insurance shall be issued by general insurance companies from 1st April, 2021. The basic purpose of issuing standard home policy is to boost property coverage against natural calamities and damages from fire and other events. In addition to Bharat Griha Raksha two other policies are introduced for financial protection of MSME segment. The names of policies are Bharat Sookshma Udyam Suraksha & Bharat Laghu Udyam Suraksha.
Standard Home Insurance – Bharat Griha Raksha – Key Features
Policy Coverage
The standard home insurance policy provide coverage against following threats to the home covered. Fire, Natural Calamities such as earth quack, storm, cyclone, hurricane, tornado, flood, tsunami, landslide, rock slide, forest, Jungle and Bush fires, Impact Damage of any kind, Riot, Strike, Malicious Damages, Acts of terrorism, Bursting and overflowing of water tanks, apparatus and pipes, Leakage from automatic sprinkler installations and Theft.
Time Coverage
Time Coverage is 7 days from the occurrence of any of the aforesaid events.
Home Content Coverage
The insurance will provide home building coverage. Additionally, the policy will also provide automatic coverage to home content without any declaration. The home content coverage would be 20% of the sum assured up to maximum 10 Lakh. One can purchase higher insurance coverage by making declaration of home content.
Optional Policy Coverage
Bharat Griha Raksha Policy provide following optional coverage. The optional policy to be selected at the time of policy purchase.
- Insurance for Valuable Contents like jewellery and stuffs.
- Personal Accident of the insured and spouse due to an insured peril under the policy.
Waiver of Under Insurance
The policy provides complete waiver of Under insurance. If the sum of the insured general home content is less than that declared, the policy will still pay the entire amount. For example, you have insured home content up to 1 Lakh, but actual value of home content is 2 Lakh. Under such case whenever you file insurance claim, full amount 2 Lakh (up to sum assured) will be paid and not in proportion.
Add-ons
Insurers would be permitted to file innovative add-ons (additional covers) over and above the basic cover, in-built cover, optional cover, if any, and standard add-ons that these home insurance products already offer.
In addition to standard home insurance policy, two other insurance policies are introduced for small and micro enterprises. The primary aim of other two policies are to provide financial protection to MSME. Details of these policies are given below.
Bharat Sookshma Udyam Suraksha & Bharat Laghu Udyam Suraksha
This policy provides cover for the Building/Structures, Plant and Machinery, Stock and other assets of enterprises where the total value of risk across all insurable asset classes at one location exceeds Rs.5 Crore but does not exceed Rs. 50 Crore at the policy starting date.
The policy also provides several other in-built covers in addition to the basic coverage. Cover for alterations, additions or extensions, cover for specific contents, cover for start-up expenses (following a loss), Cover for payment of professional fees for Architects, Surveyors and Consulting Engineers, cost for removal of debris and Costs compelled by Municipal Regulations.
As per me, standard home insurance policy and MSME insurance is welcome move by IRDAI and surely increase penetration of home insurance and provide financial protection to MSME.
