New India launches householder’s insurance

 New India Assurance, the country’s largest non-life insurer, has launched a low cost householder’s contents insurance policy. The policy, named Griha Suvidha, will provide protection to a householder’s contents against fire and allied perils including riot, strike, floods, earthquake, terrorism, burglary, housebreaking, theft and accidental damage to contents including jewellery and valuables.

The plan comes in four options where fire, burglary and housebreaking could each be insured for a sum insured of Rs 1 lakh, Rs 2.5 lakh, Rs 5 lakh and Rs 10 lakh. Valuables and jewellery can be insured from Rs 50,000 up to Rs 4 lakh. Breakdown of domestic appliances options are Rs 50,000, Rs 75,000, Rs 1 lakh and Rs 2 lakh. The total premium is Rs 1,125 for option one, Rs 2,120 for option two, Rs 3,880 for options three and Rs 7,175 for choosing the sum insured of Rs 10 lakh.

The pre-fixed sum insured are on a first loss basis. First loss basis is a concept where the under insurance clause in the event of a claim shall not be applied on the subject matter of insurance until and unless the value of the entire property proposed is much more than the value of the property at the time of loss. The product insurers the house on a full sum insured basis.