Bharat Griha Raksha Policy

INTRODUCTION

Standard policy developed by IRDAI. For Home Will replace the policy for Dwellings
building and /or Home Contents under erstwhile Fire tariff

To be effective from 1.4.2021- and will fall BHARAT GRIHA Can be taken by anyone for their residential
accommodation irrespective of Sum insured
under Retail category of products
RAKSHA POLICY

Policy can be for one year or more than one It can be incorporated as part of package
year (Maxm -10 years) policy or other policies
FEATURES… Clause A- Insurance Contract.

Clause B – Defining Insured Events

Clause C – Cover for Home -

Building

Clause D – Cover for Home

contents

• it brings more clarity and transparency

Clause E – Additional Covers to customers.
• It makes things quite raiser for customers.

• With this move, IRDAI ensures to

Clause F - Exclusions
create awareness about the
importance of home insurance in
India."
FEATURES … CONTD…
Grievances
Waiver of
Underinsurance

Changes to Cover

I K
J
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Policy Conditions.. Other details

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 CLAUSE A – INSURANCE CONTRACT

SCHEDULE
WHO TAKES THE POLICY
POLICY --
1. POLICY DOCUMENT [Link] the structure 1. Personal details
2. POLICY SCHEDULE 1. Occupying under agreement of sale 2. Policy period
3. ENDORSEMENTS 2. Authorized occupier of your house. 3. Details of insured property
4. ADD ONS 3. Your house is occupied by tenant,a 4. Sum insured – basis
5. PROPOSALS licensee, employee 5. Covers
4. You are the tenant under an agreement 6. Add ons
7. Premium paid
 Who can take the policy
As a Owner insured can purchase Home Building Cover as its owner.

If it is a two-storey house. Insured and his family reside in the building and run a grocery
shop in two rooms of the ground floor and personally attend to the grocery business.
They can purchase this policy.

Insured own and reside in a three-storey house. Insured is a partner in a firm

that
runs an electronic shop on the ground floor. Five employees attend the shop. Insured
can purchase this policy only for the two floors of the building where he resides. And
can purchase other policies meant for commercial premises to cover the shop on the
ground floor.
 CLAUSE B-INSURED EVENTS - COVERS
Sl No Cover What is not covered

1 Fire Burning - by order of Public Authority

2 Explosion or Implosion …

3 Lightning ….

Earthquake ,Volcanic eruptions, or other …

4
convulsions of Nature
Storm,Cyclone,Typhoon,
5 Tempest,Hurricane,Tornado,Tsunami, …
Flood and Inundation
a. normal cracking, settlement or bedding down of new structures

Subsidence of the land on which Your Home Building stands, b. the settlement or movement of made up ground
6 Landslide, Rockslide c. coastal or river erosion,

d. defective design or workmanship or use of defective materials, or

e. demolition, construction, structural alterations or repair of any
property, or groundworks or excavations.
Sl No Cover What is not covered

7 Bush fire, Forest Fire, Jungle Fire

Impact damage of any kind, i.e., damage caused by impact

of, or collision caused by any external physical object (e.g. caused by pressure waves caused by aircraft or other aerial or space
vehicle, falling trees, aircraft, wall etc.) devices travelling at sonic or supersonic speeds.
8

9 Missile testing operations

caused by a. temporary or permanent dispossession, confiscation,

commandeering, requisition or destruction by order of the government or any
10 Riot, Strikes, Malicious Damages lawful authority, or b. temporary or permanent dispossession of Your Home by
unlawful occupation by any person.

Acts of terrorism (Coverage as per

11 Terrorism Clause attached) Exclusions and Excess as per Terrorism Clause attached.
Bursting or overflowing of water tanks,
12 apparatus and pipes,

a. repairs or alterations in Your Home or the building in which Your Home is

Leakage from automatic sprinkler installations. located,
13 b. repairs, removal or extension of any sprinkler installation, or
c. defects in the construction known to You.
Theft within 7 days from the occurrence of and proximately Excludes if it is a. any article or thing outside Your Home,
14 caused by any of the above Insured Events
or b. any article or thing attached from the outside of the outer walls or the
roof of Your Home, unless securely mounted.
 CLAUSE C – COVER FOR HOME
BUILDING
4. WHAT DO WE
3. FIXING THE SUM PAY
INSURED AND OTHER Cost of repairing to
FEATURE previous condition ..
[Link] USE Based on insureds
[Link] DOES Prevailing cost of declaration
FOR construction of the
IT RESIDENCE building on the
INCLUDE Can be covered only if the commencement date
Residential Unit , Having residence is used for the declared by insured and
enclosed Structure and a roof, purpose of residence - self accepted by insurer for
Basement and used only as ,spouse family, tenant Building and Actual cost of
residential place+ Additional ,employees repairs for Additional
Structures..(specific SI) structures
 Home Building does not include Contents of the Home.

03 ONLY
BUILDING .

following ‘additional structures’ (same site) a) garage, domestic out-houses used for

02 ADDITIONAL
STRUCTURES
residence, parking spaces or areas, b) compound walls, fences, gates, retaining walls and
internal roads, c) verandah or porch and the like, d) septic tanks, bio-gas plants, fixed
water storage units or tanks, e) solar panels, wind turbines and air conditioning systems,
central heating systems and the like, if not included in Home Contents Cover, and all
structure which is part of home building- giving separate sum insured. & details…

01 BUILDING
+ FITTINGS
Building structure along with fixtures and fittings permanently attached to the floor, walls
or roof, like fixed sanitary fittings, electrical wiring and other permanent fittings.
 CLAUSE C – COVER FOR HOME BUILDING
4. WHAT DO WE PAY
3. FIXING THE SUM
INSURED AND OTHER
Cost of repairing to
FEATURE
previous condition ..
[Link] USE FOR Based on insureds
[Link] DOES IT
RESIDENCE Prevailing cost of declaration
INCLUDE
construction of the
building on the
Can be covered only if the commencement date
Residential Unit , Having residence is used for the declared by insured and
enclosed Structure and a roof, purpose of residence - self accepted by insurer for
Basement and used only as ,spouse family, tenant Building and Actual cost of
residential place+ Additional ,employees repairs for Additional
Structures..(specific SI) structures
USE FOR RESIDENCE
C
A

USED ONLY FOR THE PURPOSE OF WILL PAY IF…PART OF HOME IS USED
RESIDENCE FOR THE PURPOSE OF EARNING THE
– SELF, FAMILY, TENANT LIVELIHOOD,
LICENSEE OR EMPLOYEE ..IF THE INSURED IS SELF EMPLOYED.
… ...IF YOU HAVE SHIFTED OFFICE TO HOME
BUILDING DUE TO LOCKDOWN.. OR CLOSURE
DUE TO ORDER BY PUBLIC AUTHORITY..
B

WILL NOT PAY IF…..

Home building is used as a Holiday home, or

for lodging and boarding or any other
purpose other than residential
 CLAUSE C – COVER FOR HOME BUILDING

4. WHAT DO WE PAY
3. FIXING THE SUM
INSURED AND OTHER
Cost of repairing to
FEATURE
previous condition ..
[Link] USE FOR Based on insureds
[Link] DOES IT
RESIDENCE Prevailing cost of declaration
INCLUDE
construction of the
building on the
Can be covered only if the commencement date
Residential Unit , Having residence is used for the declared by insured and
enclosed Structure and a roof, purpose of residence - self accepted by insurer for
Basement and used only as ,spouse family, tenant Building and Actual cost of
residential place+ Additional ,employees repairs for Additional
Structures..(specific SI) structures
Sum insured..buildings.

Should be in Reinstatement / Replacement value.

Market value basis – for building as well as contents not permitted

Permitted to allow sum insured which is higher than he defined cost of construction
at the policy commencement date x carpet area … but lower sum insured is not
permitted
 SUM INSURED –
DETAILS .. 1. The SI all times to be maintained
1. Policy for more than one year during the Policy Period to the full
Automatic increase of Sum extent of the Sum Insured.
Insured during the Policy 03 2. Once a claim is paid on partial loss
Period by 10% per annum the policy shall be restored to the
01 (Maxm 100% of the SI) PRORATA full original amount of Sum
FIXING SUM 2. Free cover Insured.
INCREASE 3. Premium is proportionate for the
INSURED
unexpired Policy Period from the
date of loss.
4. Can be deducted from the net
claim.
02
1. Automatically increased each
[Link] - The prevailing Cost of Construction
INCREASE OF day by an amount representing
of Home Building at the
10%- AUTOMATIC 1/365th of 10% of Sum Insured
Commencement Date as declared by 04
at the Policy Commencement
insured and accepted by insurance
Date for annual policies.
company RESTORATION OF SUM
[Link] will be the maximum amount payable INSURED
in the event the

Home Building is a Total Loss

 BASIS - SUM INSURED FOR HOME BUILDINGS
A)
For residential structure of the Home including fittings and fixtures:

• Carpet area of the structure in square metres X Rate of Cost of Construction at the policy
Commencement Date.
• The Rate of Cost of Construction is the prevailing rate of cost of construction of the Home
Building at the policy Commencement Date.

B) For additional structures: the amount that is based on the prevailing rate of cost
of construction at the Policy Commencement Date.)

Additional Structure Sum insured in Rs

• Specify the carpet area & Specify the rate of contruction per square metre at the policy commencement date

 Any addition, extension, or alteration to any structure of the Home Building that
increases its Carpet Area upto 10% of the Carpet Area existing at the
Commencement Date or on the date of renewal of this Policy, is automatically covered
What is carpet area
• Carpet Area

• For the main building unit of the Home, it is the net usable floor area, excluding the area covered by the external walls, areas
under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but including the area covered by the
internal partition walls of the residential unit

• For any enclosed structure on the same site, it is the net usable floor area of such structure; and
• for any balcony, verandah area, terrace area, parking area, or any enclosed structure that is part of the Home, it is 25% of its net usable
floor area.
SUM INSURED …Example

The area of the Home Building is 200 sq m is declared by insured and is accepted by the insurers.

The rate of cost of construction of the Home Building is ₹ 50,000 per sq.m. declared by insured and accepted by

insurer

The sum insured would be 200 sqm x Rs 50000 = Rs 1 00 00 000/-

 CLAUSE C – COVER FOR HOME BUILDING
4. WHAT DO WE PAY
3. FIXING THE SUM
INSURED AND OTHER
Cost of repairing to
FEATURE
previous condition ..
[Link] USE FOR Based on insureds
[Link] DOES IT
RESIDENCE Prevailing cost of declaration
INCLUDE
construction of the
building on the
Can be covered only if the commencement date
Residential Unit , Having residence is used for the declared by insured and
enclosed Structure and a roof, purpose of residence - self accepted by insurer for
Basement and used only as ,spouse family, tenant Building and Actual cost of
residential place+ Additional ,employees repairs for Additional
Structures..(specific SI) structures
WHAT IS PAID UNDER THE POLICY
REIMBURSE- COST OF REPAIR

A IMP: actual repair to take place –Amount Spend for repairs- reimbursed by the
insurer (BUILDING & Fittings)

NO UNDERINSURANCE

B UI DOES NOT APPLY .

BUILT IN COVER

E up to 5% of the claim amount for reasonable fees of

architect, surveyor, consulting engineer;
up to 2 % of the claim amount for reasonable costs
of removing debris from the site. Loss of
Rent and Rent for Alternative
Accommodation-
WHAT IS PAID – HOME
BUILDING
DAMAGE TO BUILDING & FITTINGS PARTIAL
A LOSSES
Cost o f Repairs + Architects surveyors , consulting
engieers fees + Debris removal charges + loss of rent or rent for
alternative accomodation

DAMAGE TO BUILDING ALONG WITH FITTINGS – TOTAL LOSS

B
Cost of construction of the entire building – sum insured

DAMAGE TO ADDITIONAL STRUCTURE

C Cost of constriction of the SPECIFIC structure subject to maxm
amount stated against the structure
Amount payable- cost of construction is less than declared by insured and accepted by
insurer

what is declared by insured and accepted

• In the previous case where the carpet area is 200 sq m and the construction of the Home Building is ₹ 50,000 per sq.m.

• There is a damage to the home building due to Earthquake which resulted in a total loss.
• Insurance company’s surveyor assesses the reconstruction cost on the date of earthquake at ₹ 80,00,000 calculated at ₹ 40,000 per sq
m for that town.
• The claim will be settled for Rs 1,00,00,000/- since we accepted the rate
Amount payable – carpet area
declared less
• In the previous case where the carpet area is 200 sq m and the construction of the Home Building is ₹ 50,000 per sq.m.

• There is a damage to the home building due to Earthquake which resulted in a total loss.
• Insurance company’s surveyor assesses the correct carpet area as 210 sq m as against the carpet area declared by insured as 200 sq
m , insurer will restrict the liability to what is declared by insured
• The claim will be settled for Rs 1,00,00,000
Amount payable – carpet area declared more

• In the previous case where the carpet area declared by insured is 200 sq m and the construction of the Home
Building is ₹ 50,000 persq.m.

• There is a damage to the home building due to Earthquake which resulted in a total loss.

• Insurance company’s surveyor assesses the correct carpet area as 180 sq m where as carpet area declared by
you was 200 sq m , insurer will restrict the liability to the sum insured applicable for correct carpet area i.e 180 sq
m x Rs 50000/- = Rs 90,00,000/-
Built in cover

1. up to 5% of the claim amount for reasonable fees of architect, surveyor, consulting engineer;

2. up to 2 % of the claim amount for reasonable costs of removing debris from the site.
3. Loss of Rent and Rent for Alternative Accommodation-
 LOSS OF RENT – For Owner
RENT FOR ALTERNATIVE ACCOMODATION - Tenant
Amount Sum insured for
payable = Sum rent Rs 60000
Owner - If Insured for Tenant - Higher
the building Cover for Loss • Period
rent for the Cover maxm – three
is occupied of Rent (as necessary for alternative [Link] from
repairs – 6 Should not be
by tenant, declared by accommodation, superior to architect to show
employee or insured in the months will be the that the building is
existing building
licensee , Proposal Form • Loss of rent difference and in the same not fit for living…
– what ever and specified by period opted for between the rent city as the insured Claim for loss of rent
is the loss insurer in the for alternative propertyour is subject to
– 12 months
of rent Policy Schedule) accommodation Home Building. acceptance of claim
X Period • Amount payable
insured in and the rent of the to building ..
is – (Rs 60000 x 6
the insured property.
months) / 12
proposal months
form ..
necessary for • = Rs 30000/-
repairs ÷ Loss
of Rent Period
opted for.
CLAUSE D – HOME CONTENTS
COVER
WHAT IS PAID UNDER CLAIM
D

SUM INSURED
C

Who can take this policy

B
WHAT IS COVERED
A
 A. What is covered under Home contents ?

• Articles or things of personal : of non-commercial use which are located inside the home.
• General Contents : that are usual in any home i.e., furniture and fittings, television sets, telephones, electronic items, antennas, water
storage equipment, air conditioners, kitchen equipment and other household items.
• Inbuilt Cover : for General Contents of the home equal to 20% of the Sum Insured for Home Building Cover subject to a maximum of ₹ 10
Lakh (Rupees Ten Lakh) provided the insured have opted for both Home Building and Home Contents cover.
• If Insured choose to have a higher Sum Insured for Home(General ) Contents, he can do so by declaring the Sum Insured in the Proposal Form
and pay additional premium
• Valuable Contents (Optional Cover) like jewellery, silverware, paintings, works of art, valuable carpets, antique items, curios, paintings
paying additional premium can be covered by declaration of sum insured and
• Excludes bullion or unset precious stones, manuscripts,
vehicles, explosive substances , cannot be covered even by declaring the same.
• Location and use of contents: Location – address of the home and use is purely personal use and no commercial use.
B –Who can take this policy – Home contents?

Owner of the building occupying the home – Home building as well as Home contents

Tenant : Purchase a policy for Home contents owned by self and for for building if he is responsible by
agreement
 C. Sum Insured – Home Contents

General Contents : Built in cover for 20% of the sum insured – Maxm Rs 10 lakhs)If Building and contents both cover are
taken)but not a free cover.. Insured has to pay the premium for the amount(20% of the building sum insured)

General Contents : Higher Sum insured – By declaration and paying additional premium

If only Home contents policy – Declare Sum insured for General Contents (should be new replacement value).
Examples of Home contents Sum insured…

The carpet area of Your Home Building is 500 sq.m. The rate of cost of construction for Your home building is Rs 50,00
per sq.m. Home building sum insured - Rs 25,00,000/-

If opted for both Home Building and Home Contents cover but have not specifically mentioned anything about Sum
Insured for contents in the proposal. There is an automatice cover for Home contents for 20% of the Sum Insured i.e
for Rs 5,00,000/-(Maxm allowed is Rs 10 lacs)
D - WHAT IS PAID UNDER –HOME
CONTENTS …
• OPTION OF THE INSURER : Reimburse the cost of repairs to a condition substantially the same as its condition at the time
of damage, Pay the cost of replacing that item with a same or similar item, Repair the damaged item to a condition
substantially the same as its condition at the time of damage.

The maximum amount payable under Home Contents is the Sum Insured shown in the
Policy Schedule for Home Contents Cover.

If the Policy Schedule shows any limit for any item, or category or groups of items, such limit is the maximum We will
pay for that item
 CLAUSE E- OPTIONAL
COVER – PERSONAL ACCIDENT COVER

Cover for Rs 5 lakhs per son. Cover for Insured or

his wife
If insured peril causes damages to the Building and/or
VALUABLE Contents and also results in Death of Insured or wife-
CONTENTS 02

Optional cover– Valuable contents on

Agreed Value Basis by declaration by
Insured and accepted by Insurer.
Valuation is waived upto SI – 5 lakhs
and individual item cost not more than
Rs 1 lakh.
01
Optional Cover – Valuable
Contents
• What is paid

Cover Type of loss Basis of claim settlement

Cover for Valuable Contents on Valuable content is physically Cost of repair

Agreed Value Basis (under Home damaged
Contents Cover) If totally Damaged Sum insured

Optional Valuable content is a Agreed Value

total loss

• If the Policy Schedule shows any limit for any item, or category or groups of items, such limit is the maximum
amount payable for that item damaged.
• Loss to only one item of a pair or set does not constitute loss or damage to the entire pair or set.
Optional Cover – Personal
Accident
• In the event an insured peril that caused damages to the Home Building and/or Home Contents
also results in the unfortunate death of either insured or spouse, Insurers pay compensation
of ₹ 5,00,000 (Rupees Five Lakh) per person.
• In the event of the unfortunate death of the insured, the Personal Accident cover shall continue for the
spouse until expiry of the policy.
CLAUSE F -
EXCLUSIONS . Loss, damage or destruction to any electrical/electronic
machine, apparatus, fixture, or fitting by over-running,
excessive pressure, short circuiting, arcing, self heating or
Deliberate ,Willful or intentional leakage of electricity from whatever cause (lightning
Radiation and
act or omission of insured, or included) This exclusion applies only to the particular
contamination clause.
anyone on his behalf and in machine so lost, damaged or destroyed.
connivance.

War Perils Pollution or Contamination unless Loss or damage to bullion or

1. . the pollution or contamination itself unset precious stones,
has resulted from an Insured Event, or manuscripts, plans, drawings,
2. an Insured Event itself results from securities, obligations or
pollution or contamination. documents of any kind, coins or
paper money, cheques, vehicles,
and explosive substances
CLAUSE F – EXCLUSIONS…CONTD.. Any addition, extension, or alteration to any structure of the
property that increases its Carpet Area by more than 10% of
the Carpet Area existing at the
Property which is missing or has
Loss of earnings, loss by Commencement Date or on the date of renewal of this Policy,
been mislaid, or its disappearance
delay, loss of market or unless You have paid additional premium and such addition,
cannot be linked to any single
other consequential. extension or alteration is added by Endorsement. .
identifiable event.

Loss or damage to any Any reduction in market value of any Costs, fees or expenses for
Insured Property Insured Property after its repair or preparing any claim.
removed from the Home reinstatement.
to any other place.
FEATURES …
CONTD… Grievanc
Waiver of es
Underinsuran
ce

Changes to
Cover
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Policy Other
G Conditions.. details
CLAUSE G- CONDITIONS..
1. Duty of disclosure to insurers even without 1. Policy – End on the past date
specifically asked for. 2. mentioned in the policy
2. Obligation to take care – as if uninsured 3. Renewal – is not automatic, insured has to
3. Inform changes in circumstances apply .. With details 3. Rejection from
4. Inspection and investigation of claims insurer –only on misrepresentation ,
5. True statements in the claim related papers noncooperation on insured’s part.
. OBLIGATIONS-
INSURED RENEWAL OF POLICY
 CLAUSE G-
1. CONDITIONS..
Cancellation by giving notice to insurer.. Cancellation will be affected nonce 1. Destruction of the Home Building –
insurer receives the notice & automatically end after 7 days- collapse
2. refund will be as decided by the insurance company under file & destroyed.. Other than insured peril
use
3. Cancellation by insurer- only only on misrepresentation,
2. Exhaustion of Sum insured.
noncooperation on insured’s part. 3. Change of use or Home building / Home
4. Long term policy – cancellation after claim – and when Restoration of SI contents
has not taken place – cancellation for remaining duration..after grossing 4. Sale of property / contents
up the premium paid by insured 5. Effect of Death of Insured..
CANCELLATION & TERMINATION OF POLICY

CANCELLATION OF THE
POLICY
CLAUSE G-
CONDITIONS..
CLAIMS PROCEDURE 1. Prefer a claim with insurance company- Immediate notice to insured
2. Take steps to prevent loss and damage
3. Immedaite notice to Authorities- Fire Brigade, District
Administration , Police authorities
4. Submit the claim document..within 30 days
5. Establish loss- Onus lies with insured to establish the event & the extent of pfysical loss
6. Fraudulent claims – cancel the policy, also inform police
7. Other Insurance – Double insurance – Insured can
select the insurer to claim damages
8. Recovery –Subrogation rights
FEATURES …
CONTD… Grievanc
Waiver of es
Underinsuran
ce

Changes to
Cover
I K
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Policy Other
G Conditions.. details
CLAUSE H TO K
A
CHANGES TO COVER

Increase or Reduce the Sum insured..Changes are to be

H requested and will be effective only when we accept the
changes.

WAIVER OF UNDERINSURANCE

I
Underinsurance does not apply to this Policy. if the Sum
Insured calculated on the basis of the information that insured is
D
less than the actual value at risk, the difference
will not affect the amount payable on a claim .

J OTHER DETAILS
Notice ,Nomination ,Applicable law and
Jurisdiction , Arbitration C
GRIEVANCES
K
GRO,Consumer Affairs Department of IRDAI,
OMBUDSMAN
Summing
up
• Various coverages are in built in .. Terrorism, STFI, EQ..
• New covers : Theft following operation of insured perils within 7 days, Volcanic eruptions..
• Sum insured is Agreed ..
• No Underinsurance
• For claims
• Prove insured event has happened
• Extent of physical loss
• Actual Repair should take place to get a claim.. Supporting Invoices
for reconstruction,/ Replacement/ Repairs
• Allow surveyor to inspect loss, take measurements, samples, & photographs