Difference among Bharat Griha Raksha Policy, Bharat Sookshma Udyam Suraksha Policy and Bharat Laghu Udyam Suraksha Policy

Insurance Regulatory and Development Authority of India (IRDAI) has introduced new Fire Insurance  guidelines with effect from 1st April, 2021. The new guidelines are specifically designed for Residential Property and Micro and Small Level Enterprises. As per new guidelines now the power of charging premium to cover the risk is in the hand of insurance companies. As per new guidelines insurer has the right to decide the premium, terms and coverage for these new policies. 

The following criteria has been decided for these new policies.

Sum Insured :-

• Bharat Griha Raksha Policy - There is no limit to cover sum insured.
• Bharat Sookshma Udyam Suraksha Policy - Risk can be covered maximum sum insured at single location upto Rs.5 Cr.
• Bharat Laghu Udyam Suraksha Policy - Risk can be covered from Sum Insured above Rs.5 Cr and maximum upto Rs.50 Cr  at single location

Coverage :- 

Fire and allied perils including STFI, Earthquake and Terrorism are mandatory cover.

Add Ons:-

Every insurer has the right to choose their own add ons and atleast 5 add ons are mandatory. The insurer has to file their product with IRDAI accordingly. 

Contents Cover :- 

• Bharat Griha Raksha Policy - Free Cover - 20% of the Sum Insured and Maximum upto Rs. 10 Lac.  Premium will be charged to cover additional contents as per policy rate.
• Bharat Sookshma Udyam Suraksha Policy - Policy rate will be charged to cover contents.
• Bharat Laghu Udyam Suraksha Policy - Policy rate will be charged to cover contents.

Under Insurance Cover :- 

• Bharat Griha Raksha Policy - Policy will be issued on value at risk basis and insured will be able to get claim upto covered value without deducting under insurance. 
• Bharat Sookshma Udyam Suraksha Policy - Free Cover up to 15% of Sum Insured.
• Bharat Laghu Udyam Suraksha Policy - Free Cover up to 15% of Sum Insured.

Moreover in Bharat Griha Raksha Policy, a person can insured valuable contents, get personal accidental cover for self and spouse by paying additional premium. Also, 7 days theft cover is free during an incident take place due to fire perils.