Definition
Bharat Griha Raksha
Bharat Griha Raksha is IRDAI's standardised home insurance product covering the building and contents against fire and allied perils.
Introduced to simplify home cover, Bharat Griha Raksha offers a single, easy-to-understand policy for the home structure and general contents, with cover against fire, lightning, storm, flood, earthquake, riot and other listed perils. It features automatic escalation of the building sum insured to keep pace with rebuilding costs.
Alongside Bharat Sookshma Udyam Suraksha and Bharat Laghu Udyam Suraksha for small businesses, it is part of IRDAI's drive to standardise property insurance so consumers face fewer confusing wordings. It pays on a reinstatement basis for the structure, reflecting the indemnity principle.
Related terms
- PerilA peril is the actual cause of a loss, such as fire, flood, theft, accident or illness, against which insurance provides protection.
- Home InsuranceHome insurance protects a dwelling and its contents against perils such as fire, theft, natural disasters and certain liabilities.
- Indemnity PrincipleThe principle of indemnity ensures an insured is restored to their pre-loss financial position but cannot profit from a claim, applying to general insurance.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.