Page 46 - Insurance Times February 2021

on the base Sum Insured on a straight line method for 14.4 Premium for the add-ons should not exceed 50% of
a maximum of 100% of the Sum Insured at the Policy the base premium for Bharat Griha Raksha.
Commencement Date without additional premium.
E.g. a Sum Insured of Rs. 10 Lakh at policy inception 15 Filing procedure
shall escalate to Rs. 11 Lakh by 1st policy anniversary, 15.1 The basic product, along with the optional covers,
Rs. 12 Lakh by 2nd policy anniversary, Rs. 13 Lakh by shall be subject to the File and Use procedure as
3rd policy anniversary and so on, with the maximum stipulated in the Product Filing Guidelines.
being Rs. 20 Lakh without additional premium.
15.2 All general insurers shall carry out the filing (which
12.5 For Annual Policy, the Sum Insured shall be includes the pricing approach) for the basic product
automatically increased each day by an amount on or before 28th Feb, 2021.
representing 1/365th of 10% of Sum Insured at the 15.3 Innovative add-ons, if any, shall be filed subject to
Policy Commencement Date.
Clause 14.3 above.
12.6 The Sum Insured for General Home Contents shall be
automatically taken as 20% of the Sum Insured of the 16 Underwriting Policy
Home Building subject to a maximum of Rs. 10 Lakh Insurers shall carry out the required modifications in
if the Home Building is covered, unless the Home their Underwriting Policy bearing in mind the
Contents cover is opted out by the proposer as a introduction of Bharat Griha Raksha.
recorded choice. For General Home Contents, the
proposer can opt for a higher Sum Insured by 17 Training for distribution of Bharat Griha
specifically declaring the same along with details.
Raksha
13 Premium Insurers shall ensure that the agents, intermediaries
13.1 The premium collected under Bharat Griha Raksha and other permitted distribution channels have the
shall be accounted under the Fire line of business. necessary information and skills to explain and market
the product. The required training needs to be
13.2 Insurers shall lay down the Minimum Premium for imparted to them. For all online/digital sales, the extant
Bharat Griha Raksha and state it clearly in the regulatory framework that is applicable shall be
Prospectus.
scrupulously followed.
13.3 Where short-period scales of rates are laid down, it
shall be stated clearly in the Prospectus. Similarly, the 18 Technical Audit
scales of refund payable to the insured when the The Technical Audit Department of the insurer shall
insured requests for cancellation of the policy shall be ensure oversight over the underwriting of these
mentioned in the policy wordings against the relevant products to ensure compliance with these Guidelines,
clause provided for. The scales shall be part of the filing apart from compliance with the extant Product Filing
under the extant Product Filing Guidelines. Guidelines.

14 Add-ons 19 Extant Product Filing Guidelines
14.1 All add-ons currently being used by insurers for the Other than what has been provided for under these
Standard Fire and Special Perils (SFSP) Policy for Guidelines, all extant provisions as per guidelines ref.
Dwellings shall be deemed withdrawn with effect
from 1st April, 2021. IRDAI/NL/GDL/F&U/030/02/2016 dated 18th February,
2016 shall be applicable for Bharat Griha Raksha.
14.2 Insurers are permitted to file innovative add-ons to
Bharat Griha Raksha. 20 Miscellaneous
14.3 However, these add-ons shall be filed in tranches. Not Insurers violating any of the provisions of these
more than 5 add-ons shall be permitted to be filed Guidelines shall be subject to regulatory action in
on or before 31st March, 2021. Subsequently, within accordance with the provisions of the applicable laws/
the first 6 months of launch of the product, i.e., by other framework.
30th September, 2021 the second tranche, which shall
again not exceed 5 in number, may be filed. The rest (Yegnapriya Bharath)
may be filed subsequent to that. Chief General Manager (Non-life)
The Insurance Times, February 2021