Insurers get nod to design products for fire, allied perils

In order to increase insurance penetration and provide a 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 regulator has issued a circular in this regard. “This move 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,” IRDAI said in a release.

The move by the regulator comes after the introduction of standard products in this segment, namely Bharat Griha Raksha, Bharat Sookshma Udyam Suraksha and Bharat Laghu Udyam Suraksha in April 2021.

IRDAI has clarified that it does not impose any minimum rate for premium setting by insurance and reinsurance companies in order to provide clarity to insurers.