Dear Sir / Madam,
This communication is to bring to your kind attention about the recent developments on standardization of policy covering Fire and Allied Perils. The Insurance Regulatory and Development Authority of India (IRDAI) had issued guidelines (IRDA/ NL/GDL/MISC/004/01/2021 and IRDA/ NL/GDL/MISC/005/01/2021) on 4th January 2021 whereby the Standard Fire and Special Perils (SFSP) Policy will be replaced by the following standard products.
- Bharat Griha Raksha (Dwelling) – Click Link to Know More:
- Bharat Sookshma Udyam Suraksha (Micro Enterprises) – Click Link to Know More:
- Bharat Laghu Udyam Suraksha (Small Enterprises) – Click Link to Know More:
These products shall be mandatorily offered by all general insurers including SBI General Insurance, carrying on Fire and Allied perils insurance business with effect from 1st April 2021. This will be applicable for new and renewal proposals, both.
In this connection we would also like to advise you that, the coverages of the fire section in respect to package products as listed in Annexure A, will be replaced by the enhanced covers offered under these new standardized products.
The details of the products impacted on account of these changes are listed in Annexure A for your reference.
A synopsis of enriched features vis-à-vis the existing products are listed in Annexure B.
Quick Highlights of the three standard insurance products that will be launched effective 1st April 2021. Presentation is also shared in the Link for your reference.
We request your support to make the new standardized products available to the customers and at the same time discontinue offering any of our existing products effective 31st March 2021.
Our Sales Team will apprise your team on these new standard products, shortly, followed by a detailed Product Training.
MD & CEO
Mr. P C Kandpal
Enclosures –
Frequently Asked Questions
Product Presentation
Annexure A
Impact on Existing Products & Add-Ons: -
| Sr No | Existing Product Name | Sum Insured up to Rs. 5 Crores | Add-Ons |
|---|---|---|---|
| 1 | Standard Fire and Special Perils Policy | Will be replaced by Bharat Sookshma Udyam Suraksha* |
All add-ons for the said products up to Rs.50 Cr Sum Insured stand withdrawn and will be filed in tranches as under : 5 Add-Ons – 31st March 5 Add-Ons – 30th September Balance – as and when required. We will keep updating the communications once the filed add-ons are approved |
| 2 | SME Package | The Fire Section will be replaced by Bharat Sookshma Udyam Suraksha and Burglary cover will operate as is | |
| 3 | Business Package | The Fire Section will be replaced by Bharat Sookshma Udyam Suraksha and other 11 sections will operate as is | |
| 4 | Long Term Home | Will be replaced by Bharat Griha Raksha (No minimum and maximum Sum Insured restriction) | |
| 5 | Simple Home Insurance, Gramin Samriddhi Bima & Micro Insurance | SFSP Section will be replaced by Bharat Griha Raksha |
* Co-operative Housing Societies will be booked under these products as per the Sum Insured exposure
Annexure B
Comparison for Long Term Home (being phased out) and Bharat Griha Raksha Product (replacement product)
| Coverage Description | Long-Term Home | Bharat Griha Raksha |
|---|---|---|
| Fire & Allied Perils | 13 |
14 Theft within 7 days from the occurrence of and proximately caused by any of the Insured Events |
| Terrorism | - | Inbuilt |
| STFI / EQ | In-built | Inbuilt |
| Architect, Surveyor, Consulting Engineer Fee | - | Inbuilt |
| Cost for Removal of debris | - | Inbuilt |
| Loss of Rent / Alternate Accommodation | - | Inbuilt |
| Valuables Content on Agreed value | - | Optional |
| Personal Accident to Insured and Spouse | - | Optional |
| Underinsurance | Applicable | Waived |
| Deductible | Applicable | NIL |
| Pricing | Zone Based | Flat |
| Tenure | 3 yrs – 30 yrs | 1 yr – 10 yrs |
Comparison for SFSP Products and Fire Section of Package Products (being phased out) and Bharat Sookshma Udyam Suraksha (replacement product)
| Coverage Description | SFSP / Fire Section of Package Products as listed in Annexure A | Bharat Sookshma Udyam Suraksha & |
|---|---|---|
| Fire & Allied Perils | 13 |
14 Theft within 7 days from the occurrence of and proximately caused by any of the Insured Events |
| Terrorism | Optional | Inbuilt |
| STFI / EQ | Optional | Inbuilt |
| Additions, alterations or extensions | Add-On | Inbuilt |
| Temporary Removal of Stock | Add-On | Inbuilt |
| Cover for Specific Contents like Money, Documents | Add-On | Inbuilt |
| Start-Up Expenses | Add-On | Inbuilt |
| Professional fees | Add-On | Inbuilt |
| Costs for Removal of debris | Add-On | Inbuilt |
| Costs compelled by Municipal Regulations | Add-On | Inbuilt |
| Floater Cover for Stocks | Add-On | Inbuilt |
| Declaration Policy for Stocks | Add-On | Add-On |
| Underinsurance | Applicable | Waived up to 15% |
| Deductible | Applicable | Applicable |
| Pricing | Occupancy Based | Occupancy Based |
| Tenure | Annual | Annual |
