Bharat Griha Raksha: IRDAI makes home insurance simpler

IRDAI just made India’s complicated home insurance process simpler and more customer-friendly, to encourage more people to buy home insurance.

Bharat Griha Raksha: IRDAI makes home insurance simpler

The Insurance Regulatory and Development Authority of India (IRDAI) has made it easier to purchase a home insurance policy. Bharat Griha Raksha, which will be implemented from 1 April 2021, replaces the earlier Standard Fire and Special Perils (SFSP) policy as mandated under All India Fire Tariff (AIFT) 2001.

IRDAI declared in a press release that all general insurance companies would henceforth sell the following products:

  • Bharat Griha Raksha (meant for home buildings and home contents)
  • Bharat Sookshma Udyam Suraksha (meant for enterprises where the total value at risk is up to Rs 5 crore)
  • Bharat Laghu Udyam Suraksha (for enterprises where the total value at risk is more than Rs 5 crore and under Rs 50 crore)

Related: Your guide to home insurance

What does Bharat Griha Raksha insurance cover?
Bharat Griha Raksha covers a wide range of perils – fire, natural catastrophes (storm, cyclone, typhoon, tempest, hurricane, tornado, tsunami, flood, inundation, earthquake, subsidence, landslide, rockslide), 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.

The policy allows you 7 days from the occurrence of the aforementioned events to file a claim. You also get two optional covers:
(1) Insurance for valuable contents such as jewellery and curios, and
(2) Personal accident cover for the insured and spouse due to an insured peril under the policy.

Other important features of Bharat Griha Raksha
The policy gives a complete waiver of underinsurance. In other words, the payout will be only as per the value mentioned at the time of buying insurance, not more than the sum insured, even if the value is claimed to be higher. This is automatic and there’s no need to declare details. Also, 20% (up to a maximum of Rs 10 lakh) of the sum insured covers appliances and furniture, also referred to as ‘home contents’.

The words and explanations of Bharat Griha Raksha is policyholder-friendly, keeping in mind the convenience of people. Key feature documents (KFD) explaining the salient aspects of the policy, along with a section for frequently asked questions (FAQ) have been done up by IRDAI. 

Standard add-ons and innovative add-ons (that is, additional covers) can be offered along with the basic cover, in-built cover, optional cover (if any), and standard add-ons that these retail products already offer.

Related: 6 compelling reasons why you need Home Insurance

When to apply for Bharat Griha Raksha?
All one needs to do is wait for 1 April 2021 in order to apply for a Bharat Griha Raksha policy. The details will be put up soon by IRDAI on its website.

Last words
This policyholder-friendly system being introduced by IRDAI is expected to encourage home owners to obtain a home insurance policy with ease. Since it comes directly from IRDAI, Bharat Griha Raksha is expected to be economical. The inclusion of common disasters like flood and earthquake will fill a gap and address some concerns that used to exist earlier. Look at these 4 Situations Every Home Owner Fears


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