Why do I need a Householder Insurance Policy?Home is an environment offering affection & security. To ensure complete security against accidental damages householder policy provides cover both to building & its contents.

Who can take Householder Insurance Policy?This policy may be issued to a householder whether staying in a rented or own accommodation provided premises is of pucca construction. Single Householder policy shall be issued to a Householder. Multiple policies are not permitted.

How to select the Sum insured?For building:- The sum insured must cover the full cost of rebuilding the property including architect fee etc & the cost of clearing away the debris & cost of obtaining sanction of any new building regulations or by laws.For content:- The sum insured should be the replacement value except for section III (All Risks) where it should be market value where for jewellery it shall be market value less 10% (making charges) or purchase cost.For the remaining sections the sum insured is as opted by the proposer

What does the Householder Insurance Policy cover?Householder Insurance Policy offers comprehensive shelter for residential building & its contents against a variety of risks. This is a composite policy split into ten sections covering number of contingencies. Minimum of three sections are necessarily to be taken, out of which Section IB relating to coverage of contents against Fire & allied perils is compulsory. Section-wise coverage is as follows:-

2. Coverage available & premium thereof:COVERAGESection IBuilding & contents fire & allied perils:-Fire, lighting explosion of gas in domestic appliances.Bursting & overflowing of water tanks, apparatus or pipes.Aircraft or articles dropped therefrom.Riot, strike or malicious act.Earthquake (fire & or shock), subsidence & landslide (including Rockslide).Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tornado or Cyclone.Direct impact damage.Subsidence & landslide including rockslide.Missile testing operations.Leaking from automatic sprinkler installations.Bush fire.(Extension for temporary removal of contents to temporary residence up to 120 days any one policy period subject to maximum liability being 10% of the sum insured).RATE(%o)PERTHOUSAND

0.30 %

Section II AHouse breaking including Larceny & Theft.Section II BHouse breaking excluding Larceny & Theft.(Extension for temporary removal of contents to temporary residence up to 120 days any one policy period subject to maximum liability being 10% of the sum insured). * Risks located in Housing Societies having permanent security arrangement may be allowed discount of 20% on Section II. Section IIIAll Risk (Jewellery & Valuables) by Accident or Misfortune whilst anywhere in India.Section IVPlate Glass by accidental breakage.Section VBreak down of Domestic Appliances Electrical/electronic appliances, apparatus or gadgets unforeseen & sudden physical damage caused by &/or solely due to mechanical &/or Electrical Breakdown of domestic, electrical, electronic (except for computers & its accessories) or mechanical appliances, apparatuses or gadgets (including television & its accessories) RATE (%o)1.00*

0.35*

8.00

8.00

2.00

Section VI (New)Personal Computer any unforeseen, sudden, physical loss or damage due to any cause other than those specifically excluded.A Personal Computers & its accessories.B Data carrying materials .C Lap Top.Section VIIPedal CycleFire, Lighting or External Explosion.Riot, Strike or Malicious Act.Housebreaking &/or Theft.Accidental External Means.Flood, Cyclone, Storm, Tempest & other similar convulsions of nature & atmospheric disturbance.Earthquake (Fire &/or Shock).Section VIIIBaggage Insurance whilst traveling anywhere in India whilst on tour or holidays by ACCIDENT OR MIS - FORTUNE.Section IXPersonal Accident (All family members for CSI Rs. 50,000 /- to Rs. 5 lacs in slabs of Rs.25,000 /-, children above 5 years CSI @ 50%) CSI for each member be same. Upper age limit 65 years. Weekly compensation only for hospitalization period in hospital.Section XAPublic liability.Section XBEmployers Liability (WC) on Annual wage. Rate (%)

8.00

10.00

5.00

0.60+20% MedicalExpenses table II

0.40

8.00

Salient Features:-1.15% (fifteen percent) of the sum insured is waived for the purpose of under insurance for section I.2.All items having value of more than 5% (five percent) of the total sum insured under Section I B should be separately specified along with their values.3.Section 1 B & Section II also cover temporary removal of property for a maximum period of 120 days in any one policy period. Companys liability shall be limited to 1/10th of the total sum insured under the section.

4. Under the All Risks Section (Section III) any article valued at more than 10% (ten percent) of the sum insured has to be separately specified along with its value.5. Jewellery & valuables kept in the bank locker may be covered on first loss basis under Section III. While giving this coverage complete list of jewellery & valuables to be kept in locker should be taken along with the proposal form. Proposer should also indicate the percentage of the total value, which may be used by him or his family members at any point of time.

6. Personal computers, lap tops & related equipment installed in Insureds home may be covered against the risk of fire, housebreaking & electrical & mechanical breakdown.7. For taking coverage under more than six (6) sections 15% (fifteen percent) discount is allowed. For more than six (6) sections 20% (twenty percent) discount is allowed

8. Annual as well as long term policies may be issued. Maximum period for long-term policy is four (4) years. The long-term policies are allowed at the rate of annual compounded discount of 7.5% in the rate.9. There is no upper limit for sum insured either on building or contents.

10. Artwork, show pieces may be covered provided these are valued by govt. approved valuers.11. Terrorism risk can be covered at additional premium @0.10% per thousand (mille) with an excess of 0.50% of sum insured.12. Housing societies having their own security arrangement can be given discount of up to 20% for Section II. Housing societies can also be given volume discount.

ExcessFire & Allied Perils (sec.I)All Risks (Sec.III)Breakdown (Domestic Appliances), Personal Computer & Baggage (Section V, VI, & VIII)Bicycle (Sec. VII)For act of God Perils 5% of claim amount subject to minimum of Rs 10,000 /- for each & every claim.For rest of the Perils Rs 10,000 /- for each & every claim.2.Rs 2,500 /- for each & every claim.3.Rs 1,000 /- for each & every claim.4.Rs 250 /- for each & every claim.

Assignment Form:- Duly witnessed Assignment form in respect of persons covered under Personal Accident sections should always be obtained.Jurisdiction:- Territorial jurisdiction is India except for Section VI C (Lap Top), Section VIII (Baggage) & Section IX (PA) & Indian law shall apply. All disputes shall be subject to Indian law.

Acceptance Limit:- The acceptance limit of Regional Office is Rs.15 crores for Section 1 & Rs.2 (two) crores per se for the remaining sections. Any proposal for higher amount shall need to be referred to H.O depending on risk perception & evaluation BM/DM may allow discount of up to 5%, RO underwriter up to 15% & nominated HO underwriter up to 25% on the package rates by recording the reasons for allowing discount.

DiscountsA). Sectional Discount:- For taking coverage under more than four section 15% discount is allowed. For more than six sections 20% discount is allowed.B). i) Renewal Discount:- Renewal discount (similar to the one allowed in Office Umbrella Policy) may also be allowed at the following scale:-1st Renewal5% on Gross Total Premium2nd Renewal10% on Gross Total Premium3rd Renewal 15% on Gross Total PremiumThis discount is subject to there being no known or reported loss. In case of a claim no discount be allowed at renewal.The Grace Period for availability of renewal discount would be 30 (Thirty) days.

ii) Loading:- In case of a claim affecting one policy period the premium should be loaded by 10% at renewal. If two policy periods have been affected by claims then at subsequent renewal premium should be loaded by 25% & so on.ii) Long Term Discount:- Long Term Policies for up to 4 years can be issued for which annually compounded discount @ 7.5% may be allowed.NB: The accounting for long term policy will be as per usual accounting procedure.C). Risks located in housing societies having permanent security arrangement may be allowed discount of 20% on Section II.

D). If a number of houses / flats located in a housing society are insured, volume discount at the following scale may be allowed on gross total premium.No. of Houses / FlatsDiscount (% age)50 100 5% on GrossTotal Premium

101 200 10% on Gross Total Premium

201 onwards20% on Gross Total Premium

E). Underwriters discount:-The nominated underwriter at RO/HO may consider good features discount on the gross premium. The nominated underwriter at RO may consider discount on the Internal Package Rate not exceeding 15% & nominated HO underwriter may consider discount on the Package Rate not exceeding 25% (including 15% at RO level). The reasons for allowing such discount have to be recorded in writing.

F). Direct Business Discount:- 15% discount for direct business may be allowed in lieu of Agency Commission.The various discounts will be granted in such a manner that the minimum net premium after allowing al discounts before direct business discount will not be less than 50% of Gross Total Premium.The sequence of various discounts on Section-wise Revised Package Rate OR on Gross Total Premium as the case may be will be as under:-1. Long-term discounts2. Section discounts3. Renewal discounts4. Underwriters discounts5. Volume discounts6. Direct Business Discount as per IRDA prescribed limit.

Short period premium:- Annual policy shall be issued but in case there is a mid-term cancellation by the insured, the company shall refund the premium at short period scale subject to there being no known or reported claim under the policy.

For a period not exceeding 15 days 10% of the Annual rateFor a period not exceeding 1 month 15% of the Annual rateFor a period not exceeding 2 months 30% of the Annual rateFor a period not exceeding 3 months 40% of the Annual rate For a period not exceeding 4 months 50% of the Annual rateFor a period not exceeding 5 months 60% of the Annual rateFor a period not exceeding 6 months 70% of the Annual rateFor a period not exceeding 7 months 75% of the Annual rateFor a period not exceeding 8 months 80% of the Annual rateFor a period not exceeding 9 months 85% of the Annual rateFor a period exceeding 9 months The Annual amount rate

If the Company cancels the policy. The refund of premium shall be on proportionate basis subject to there being no reported claim under the policy.Settlement of Claims:- ROs authority for settlement of claims shall depend on the section under which the claim has arisen. The table below details the same:- Rs in lacs CRM RCC1 DGM I/c RCC 2Fire. 75 100 200 150Engg. 50 80 200 150Misc. 10 15 20 25

Reinstatement of sum insured:- The sum insureds covered by Section I (Fire & allied perils except Temporary Removal Extension), Section II (Housebreaking, larceny & Theft except Temporary Removal Extension), Section III (All risks), Section IV (Plate Glass), Section V (Break down of electrical, electronic & mechanical appliances), Section VI (Personal Computers), shall not be reduced by the amount of any damage but the prorata premium on the amount of damage from the date of occurrence of damage to expiry of policy period shall be payable by the insured. The applicable additional premium shall be deducted from the net claim amount under the poilicy.Clarifications:- For any clarification in respect of these guidelines the Regional Office shall make reference to Head Office.