What are the Standard Products in Insurance?

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What are the Standard Products in Insurance?

The basic aim of every insurance policy is to provide financial and medical protection to policyholders. Other needs of the insured are covered under the general insurance policies. These policies are easy to understand and made for the people who do not have any life insurance coverage. 

The Insurance Regulatory Authority of India (IRDAI) introduced these policies, making it easier for buyers to make informed choices and also reducing the chances of mis-selling. In 2020, the IRDAI made it compulsory for all general and health insurers to introduce standard insurance products. Check the list of all IRDA insurance products in life insurance, health insurance and general insurance.

Life Insurance Products

The following are the standard products which are sold by life insurance companies to the people to get the life insurance as per the requirements.

Saral Jeevan Bima

Saral Jeevan Bima Yojana is a term insurance plan that provides financial protection to the family of the policyholder in case of his/her unfortunate death. The terms and conditions of the plan are easy to understand and offer multiple benefits. These benefits are as follows:

• Provide a tax free return in your absence.
• Secure the family members in the different sections of the society such as education, residence and occupation.
• Offer lower sum assured options from Rs. 5 lakhs to 49.5 lakhs.
• People whose income is less than 5 lakh rupees, and self-employed people who do not have proof of income, can purchase the plan.
• Premium rates are lower than regular term insurance plans as it has lower sum insured covered.

So, SJB is the best option for the person with lower income. It is affordable, simple and flexible for all buyers as it covers the diverse payment options. 

Saral Pension

To look after the post retirement needs of the policy holders, the Life Insurance Corporation of India (LIC) has launched the policy called Saral Pension Yojana. It is an immediate Annuity Plan which is made under the guidelines and procedures of IRDAI. The policyholders have two options to choose the payments of sum assured. These options are as follows:

• The rates of the annuity are guaranteed at the commencement of the policy. or
• The annuities are payable to the annuitant’s lifetime.

The Saral Pension Yojana is a non-participating, single premium policy with immediate annuity plan. As the insured has a choice of the frequency of the payment, policy offers annually, half-yearly, quarterly, and monthly modes of payments. 

General Insurance Standard Products

The following are the standard products which are sold by general insurance companies to the people to get the insurance for their business, home, etc.

Bharat Griha Raksha

The Bharat Griha Raksha is a home insurance policy, as it covers the several types of residential properties in India. The Insurance Regulatory Authority of India (IRDAI) has made it compulsory for all general insurance companies to offer home insurance policies. Most of the insurers start offering this plan from April 1st, 2021. Under the Bharat Griha Raksha policy the homeowners and the tenants both are covered. Below are some instances because of that loss or damage that has occurred are covered.

• Fire accidents, explosions & implosions.
• Natural calamities such as earthquakes, storms, typhoons, landslides, etc.
• Forest fire and bushfire.
• External impact such as falling trees, vehicles, etc.

Some of the loss or damages caused by the following instances are not covered under the Bharat Griha Raksha Bima Yojana.

• Electric or electronic machine.
• Any apparatus inside the home structure.
• Over running of any machinery, arcing or self heating.

Bharat Sookshma Udyam Suraksha

The Bharat Sookshma Udyam Suraksha policy provides fire insurance. Usually fire insurance only provides cover for loss caused by the fire and other mentioned instances. But in the BSUS insurance, you got coverage for the property and other assets of the business. Under the policy the following perils are covered:

• Damage due to fire and lightning.
• Damage or loss due to explosion and implosion.
• Impact damage or loss due to RSMD and STFI.
• Loss due to missile testing operations.
• Theft or loss due to natural calamities.

Bharat Laghu Udyam Suraksha

 Bharat Laghu Udyam Suraksha is a policy provided by coverage to the policyholder against the loss caused due to fire and allied risks. This is designed for Small and Medium Enterprises (SMEs) to help them cover their business losses due to any natural calamity, fire, explosion, etc. The policy will be purchased if the total insurable assets of a business are more than Rs. 5 crore or less than Rs. 50 crore.

Coverage under Bharat Laghu Udyam Suraksha (BLUS) Insurance covers the building, stocks, plant and machinery and miscellaneous assets such as furniture, pieces of equipment and fixtures are covered under the policy.

Health Insurance Standard Product

The following are the standard products which are sold by health insurance companies to people for their medical needs. These are available for individuals and families also.

Arogya Sanjeevini

Arogya Sanjeevani Policy is a basic health insurance policy which provides coverage up to Rs. 5 lakhs against the medical / hospitalization expenses. As per the Insurance Regulatory and Development Authority of India (IRDAI) all the insurance companies must have a basic & standard health insurance policy for both individuals & families. Under the policy, two types of plans are covered.

Individual Plan: Under this plan only one policy holder can avail the benefit.

Family Floater Plan: In this plan, the whole family can avail the benefits of policy. It can include the dependents of the insured in a single policy.

Corona Kavach

The corona kavach policy covers medical and hospitalization expenses which arise from the Covid-19 treatment. It also covers the pre-post hospitalization expenses, home treatment expenses and AYUSH treatment in case anyone in the family tested positive for Covid-19. In this policy, you can get a sum insured of Rs. 5 lakhs and cover the cost of PPE kits, masks, gloves, etc.

Corona Rakshak

This policy also covers the medical and hospitalization expenses if you are tested Covid-19 positive. The 100% sum insured will be provided, under the policy you can buy a policy up to Rs. 2.5 lakhs and can avail the benefits for the treatment. The benefits of the policy are as follows:

• No need for pre-medical screening before purchasing the policy.
•  Low waiting period of 15 days only. 
• Premium paid is eligible for tax exemption under Section 80D.

Maha Rakshak

In Maha Rakshak plan the complete health needs of your family are covered. Whether you live in India or abroad, you can secure the future of your family. NRIs are also eligible to purchase the Maha Rakshak plan. In the plan you can easily increase the sum insured at the different stages of life. Other benefits are as follows:

• Have the option to pay regular premiums or single premiums.
• Discounted rates are available for females and non-smokers.
• Option to add riders.
• Tax benefit under 80C and 10(10D) of the Income Tax Act, 1961.

Saral Suraksha Bima

Any accident can turn the world upside down, which can be done with extreme care and caution. So, for these cases ensuring the financial protection of the family is important. Saral Suraksha Bima Yojana provides this kind of security. Under the policy personal accident, death, permanent total/ partial disablement due to accidental injuries are covered. Benefits of the Saral Suraksha Bima are as follows:

• Lump-sum benefit pay-out.
• Sum insured up to Rs. 1 crore.
• Reliable protection for saving.

Conclusion

During the pandemic the Insurance Regulatory and Development Authority of India (IRDAI) states that every insurance company has to introduce standard insurance policies whether it’s a life, health, or other general insurance policy. The insurance brokers are selling these policies online to people and help them understand its features. So, if you want to be an insurance broker, you must have an IRDA license. Registrationwala assist brokers to get the license, reach out to us to know the process.

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