New IRDAI Guidelines - Bharat Griha Suraksha Policy , Bharat Sookshma Udyam Suraksha Policy and Bharat Ladhu Udyam Suraksha Policy

The Insurance Regulatory and Development Authority of India recently introduced New Fire Insurance Guidelines for Dwellings and Micro, Small & Medium Enterprises whose Property Value at a single location comes under 50 crore. As per the new guideline 3 new products are introduced i.e. Bharat Griha Suraksha Policy (India House (Dwellings) Protection Policy), Bharat Sookshma Udyam Suraksha Policy (India Micro Enterprise Protection Policy) and Bharat Laghu Udyam Suraksha Policy (India Small Enterprise Protection Policy). These policies will come in effect from 1st April, 2021 onwards and will replace the existing Fire and Special Perils Policy. Every insurer have been authorized to fix their terms, rates and add on coverage as per their convenient but before this they will have to file product to IRDAI for final approval.

Now, we are describing brief coverage details under these 3 policies.

Bharat Griha Suraksha Policy.

• This policy will cover all kind of dwellings.
• No Sum Insured Limit
• Coverage now include theft cover within 7 days an incident take place under Fire and allied perils cover.
• Automatic cover of contents upto 20% of building value maximum upto Rs.10 Lac.
• No under insurance will be considered at the time of claim. Insured will get benefit upto Sum Insured.
• Contents and Valuables can be covered by paying additional premium
• Personal accident cover can be granted to insured and spouse due to an insured peril under the policy by paying additional premium.

Bharat Sookshma Udyam Suraksha Policy.

• This policy will cover micro level industries whose value at risk on a single location does not exceed Rs. 5 Cr.
• This policy too offers cover against a wide range of perils, quite similar to the policy meant for Dwellings
• The policy has several in-built covers in addition to the basic coverage—Cover for alterations, additions or extensions, Cover for stocks on a floater basis, Cover for temporary removal of stocks, 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.
• The policy can be taken by micro level enterprises such as offices, hotels, industries, storage risks and so on.
• The policy waives under insurance to the extent of 15%.

Bharat Laghu Udyam Suraksha Policy.

• This policy will cover small scale industries whose value at risk on a single location exceeds Rs.5 Crore but does not exceed Rs. 50 Crore.
• The range of perils against which insurance is offered is similar to the policy meant for micro level  enterprises.
• This policy too has all the in-built covers that the policy for micro level enterprises has
• The policy, again, can be taken for all types of risks such as offices, hotels, industries, storage risks and so on

I hope these details will help you to understand the new guidelines in short.