After launching a standard health insurance product, the insurance regulator has now proposed to launch three new standard products for the purpose of covering dwellings, micro commercial entities and small commercial entities.

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While proposing to launch the three new standard insurance products, Insurance Regulatory and Development Authority (IRDAI) said the occurrence of catastrophic events, largely floods, in the last few years has seen huge losses to property, in particular, to dwellings and small businesses. The protection gap stands out, both in terms of property not being insured and those not being adequately insured.

According to IRDAI circular, the three new standard products are proposed in the segment of standard fire and special perils. The policy covering dwellings would be for any sum insured. The policy covering micro commercial entities would be for value at risk at any one location not exceeding Rs 5 crore. The policy will be covering small commercial entities would be for value at risk not exceeding Rs 50 crore across all insurable asset classes at any one location.

IRDAI has invited suggestions from public on names for the proposed standard products and a cash price of Rs 10,000 for each product will be paid to the proposer of the selected name. The proposer of the selected name will also get certificate of appreciation from IRDAI chairman. Suggestions from public will have to be sent to IRDAI by July 10, 2020.

First Published:Jun 26, 2020 9:34 PM IST