New India launches home insurance product

It is a home insurance plan covering natural perils like flood, earthquake, fire, burglary and terrorism

New India Assurance has launched a home insurance product 'Griha Suvidha'. The product offers a cover for homes against various assets and belongings of the household against natural perils like flood, earthquake, fire, burglary and terrorism.

G Srinivasan, chairman and managing director of New India Assurance said that they expect to sell 2.5 million Griha Suvidha policies in this financial year. "It is a simple policy and will be available via all our channels of distribution, including agents and online portals," he said. He added that claims will be automatically settled under this policy, with surveyors required only for larger (above Rs 20,000) claims.

 

 

Unlike other policies, condition of average is not applicable in this. This means that one need to declare the average value of the products, valuables in the house. Instead, this will be a first loss policy where the claims will be paid up to the level of sum assured.

The policy has four options of sum assured ranging from Rs 1 lakh-Rs 10 lakh for fire and allied perils, Rs 1 lakh-10 lakh from burglary, housebreaking and theft, Rs 50,000-4 lakh for valuables and jewellery, Rs 50,000-2 lakh for breakdown of domestic appliances among others.

 

Further, one can choose from Rs 25,000-75,000 for television/desktop cover under four options. The total premiums for all these covers across the four options ranges from Rs 1,125-7,175 annually.

However, to cover the fire and allied perils in premises, the cost is Rs 0.30 per mille or per thousand depending on the value of the property. Here, the full sum insured is the value of the property which is the residential premises.

New India which is a part of the accident insurance scheme under Jan Suraksha Yojana has also tied yo with 6 public sector and 8 private sector banks apart from 157 cooperative bank for it. They have more than 10 million subscribers under this scheme. The insurer which also has won the RuPay card personal accident cover mandate for this fiscal said that there have been about 170 million cards offered with their cover.