Bharat Griha Raksha Policy: The Home Insurance Policy

The IRDAI is to introduce standard products covering the risk of fire and allied perils. The policy being introduced is to replace the Standard Fire and Special Perils Policy. It has three main components namely the Bharat Griha Raksha, Bharat Laghu Udyam Suraksha and Bharat Sookshma Udyam Suraksha.

What is Bharat Griha Raksha?

Under the Bharat Griha Raksha policy, the IRDAI (Insurance Regulatory Development Authority of India) will introduce a standard home insurance policy that will cover risk of fire and other related dangers.

What are the key features of Bharat Griha Raksha Policy?

  • The policy will cover a wide range of dangers such as Natural catastrophs like cyclone, storm, tsunami, Hurricane, floods, earthquake, landslide, fires, bushfires, impact damages of any kind, strike, riot, acts of terrorism, malicious damage of, overflowing of water tanks, pipe leakage from automatic sprinkler installations, bursting of water tanks and test within 7 days from the occurrence.
  • The policy will also offer “General Home Content Insurance” apart from insurance coverage for home building.
  • The policy will offer 20% of sum insured for the building subject to a maximum of 10 lacs of rupees.
  • There are two optional covers offered by the policy. They are insurance for valuable content such as jewellery and insurance for personal accident of insured and spouse due to and insured danger under the policy.
  • 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 instance, assume that, the policyholder has insured home content for 50,000 rupees. On the other hand, the actual value of the home content is 1 lakh rupees. This means that the insured value is less than the actual value. In such cases the policy will pay the entire sum insured and not in proportion in spite of the fact that the insured value is less.

What is Bharat Sookshma Udyam Suraksha?

It is the standard product for enterprises for which the total risk value of up to Rs 5 crores. It will provide coverage to machinery, buildings, plant, stocks and other assets.

What is Bharat Laghu Udyam Suraksha?

It will cover enterprises for which the total value of risk  across the insurable asset classes in the location exceeds Rs 5 crores.


1 Comment

  1. M. Muzaffar

    January 7, 2021 at 12:45 pm

    Does policy cover losses due to snowfall?

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