EXCLUSIVE: Modi Govt working on house insurance scheme; cover up to Rs 3 lakh - damages under FLOODS, EARTHQUAKES to be covered; Premium Rs 500 or Rs 1000?
Anurag Shah says that the broader contours of this policy have already been prepared. The quotations given by the companies for this policy is around Rs 1000 as premium for the policy. However, the central government wants the insurance companies to keep a premium around Rs 500. The talks are ongoing on this issue, Shah further says
The Narendra Modi Government is planning to launch a big scheme related to home insurance. The coverage will be increased by Rs 3 lakhs. The damages from earthquakes and floods will also be covered. Zee Business’ Anurag Shah has this detailed report.
Shah said that the central government was working on a big scheme and is planning to give home insurance cover throughout the country. The sum assured will be Rs 3 lakh under this scheme. It will cover damages from floods, earthquake, and fire.
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Shah said that the broader contours of this policy have already been prepared. The quotations given by the companies for this policy is around Rs 1000 as premium for the policy. However, the central government wants the insurance companies to keep a premium around Rs 500. The talks are ongoing on this issue, Shah said.
It is now being seen as a gamechanger scheme in this segment for the consumers and the companies, Shah said.
What all will be covered under this scheme: Shah says all this will likely be covered under this scheme:
Damages under natural calamities like earthquake and floods up to Rs 3 lakh.
The contents of the house.
There will be a personal accident cover of at least two people of the household. The accident cover will be in the name of the two owners or the spouse of the owner.
The government is moving swiftly on this and the discussions are now primarily hinged upon the premium amount.
General Insurance Companies stocks are likely to get impacted once the scheme is rolled out.
General Insurance Corporations of India (GIC) shares were trading at Rs 178.75 on the NSE on Wednesday when the news was broken and were up over 2 per cent. Stocks of The New India Assurance were also up 2.5% and were trading at Rs 166.40 around this time.
Drawing a parallel to the government’s flagship scheme of Pradhan Mantri Fasal Bima Yojana, Shah said that companies gained greatly with this scheme after a slow start at the time of launch.
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He said that under the scheme, millions of houses are likely to get insured.
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