Standard Home Insurance Policy: Insurance regulator Insurance Regulatory and Development Authority of India (IRDA) has asked insurance companies to sell standard home insurance policies from 1 April 2021. According to the circular issued by IRDA, insurance companies must mandatorily introduce three standard products covering the risk of fire and allied hazards. These 3 standard products will be India Home Defense, India Micro Industry Security and India Small Industry Security. The speciality of these policies will be that their language and terms of insurance will be the same.
Will cover up to 50 crores
India is associated with home defence and house hold materials, while India is for micro-enterprise security ventures. The total value of risk will be up to Rs 5 crore. IRDA said that the third product, India will be for small enterprise security ventures. The total value of risk will be more than Rs 5 crore and up to Rs 50 crore.
Risks like fire, natural disaster, riot, strike, damage with the wrong intent, terrorist action will be covered under the India Home Defense Policy. Bharat Micro Enterprise Security and India Small Enterprise Security Policy are useful for the economic loss of Micro, Small and Medium Enterprises (MSME).
According to the regulator, the product has been designed with favourable features keeping the policyholder in mind. Also, it has been written in easy language for the convenience of common people. They will be launched by different companies, but the language and other things will be exactly the same. Explain that after the instructions of IRDA, from January 1, all life insurance companies have started a standard term policy. Its name is simple life insurance. It will get even insured from Rs 5 lakh to Rs 25 lakh.