Filing of fire insurance products for Dwellings_ Micro and Small Businesses

IRDAI vide reference no. IRDAI/NL/CIR/MISC/96/05/2022 has issued a Circular on ‘Filing of fire insurance products for Dwellings, Micro and Small Businesses’ dated May 12, 2022 (Circular).

Background

The Circular draws reference of the Guidelines issued by IRDAI on standard products for Fire and allied perils for dwellings, micro and small businesses, namely Bharat Griha Raksha, Bharat Sookshma Raksha and Bharat Laghu Udyam Suraksha, dated January 4, 2021. After considering the increasing demand for new covers in the fire line of business, IRDAI has issued certain Directions pertaining to designing and filing of alternative products covering fire and allied perils risk.

Summary of the Directions issued by IRDAI:

• General insurers are permitted to design and file alternative products covering Fire and allied perils for the risks de-notified vide De-notification of All India Fire Tariff (AIFT) for certain risks.
• Such alternative products may be variations of the standard product and may include already approved add-ons as part of the base product or may delete an existing provision. However IRDAI has clarified that the definitions and wordings of terms used in the standard product shall be the reference point for those terms when used in the alternative products as well.
• Pricing of the products shall be commensurate to the risks involved.
• For the new alternative products extant product filing guidelines shall be followed.

This Circular shall come into effect from June 1, 2022 an the standard policies in force shall not be cancelled for the purpose of offering new covers

Source category: IRDAI

Attachments

• /2022/36_2022-05-12_Filing_of_fire_insurance_products_for_Dwellings__Micro_and_Small_Bu.pdf