IRDAI allows general insurers to launch new fire policies for small risks

With this, the IRDAI had scrapped its earlier circular that mandated general insurers to sell only standard products, namely Bharat Griha Raksha, Bharat Sookshma Udyam Suraksha, and Bharat Laghu Udyam Suraksha, in April 2021.

The Insurance Regulatory and Development Authority of India (IRDAI) on Thursday allowed general insurers to design and launch fire, and allied perils, insurance policies covering dwellings, micro and small enterprises.

With this, the IRDAI had scrapped its earlier circular that mandated general insurers to sell only standard products, namely Bharat Griha Raksha, Bharat Sookshma Udyam Suraksha, and Bharat Laghu Udyam Suraksha, in April 2021.

"In its continuous endeavour to increase insurance penetration and provide wider choice to policyholders, IRDAI has allowed insurance companies to design new and customised products for dwellings, micro and small enterprises for fire and allied perils," the sector regulator said.

According to IRDAI, theAmove will enable insurance companies to broaden the coverage already provided in the standard products by offering innovative add-ons or varying the existing provisions to meet the needs of the policyholders in terms of suitability and affordability.