Package Policy Covers Burglary & Equipment Breakdown Says CEO Rakesh Jain

Published By: Financial Express ​

Published Date: 24-05-2022

Home insurance offers crucial financial protection for your residence against disasters like fires, riots and natural calamities. According to Reliance General Insurance CEO Rakesh Jain, two main policy types exist to safeguard what he calls a ""financially and emotionally valuable asset.""

The basic Bharat Griha Raksha Policy (BGR) protects against damage from fires, riots, storms, cyclones and earthquakes. This policy covers both structural elements and household contents. Theft coverage applies only when it occurs within seven days following an insured event, such as a fire.

For more comprehensive protection, Jain recommends the package policy, which includes everything in the basic policy plus coverage for burglary, housebreaking and electrical equipment breakdown. This expanded policy protects valuable jewellery during home storage or travel and covers electronics like refrigerators, TVs and laptops against breakdowns.

Coverage needs vary by property type. Bungalows require additional protection for structures like compound walls and garages compared to apartments. The age of the structure has a considerable influence on eligibility and conditions, with newer buildings that are properly kept obtaining greater coverage than older properties that are not well maintained.

While package policies cost more than basic ones, Jain notes that basic home insurance remains highly affordable at approximately ""Rs 2 to 3 per day for an annual insurance value of Rs 10 lakhs."" Long-term policies offer discounted annual premiums.

""With rising uncertainties,"" Jain concludes, insurance not only prevents ""major financial setbacks"" during unforeseen events but also ""safeguards our fond memories.""