NEW DELHI: Muthoot Pappachan Group’s Muthoot Risk Insurance and Broking Services (MRIBS) is optimistic about its recently launched home insurance product, Muthoot Blue Home Insurance. MRIBS has set a target to sell over 1 lakh policies by 2019-20 fiscal.
“Our product is very simple and covers every aspect of a house at lowest premium in the market, minimum documents and hassle-free claims settlement process,” said Sriram Kumar, COO, MRIBS.
The product, where Muthoot is the broker and Bajaj Allianz is the insurer, will be sold through Muthoot Fincorp Limited's 3,600-odd branches across India. “We have designed the product keeping in mind people from the bottom of the pyramid, as hardly any big firms go there. As 60 per cent of our branches are located in rural India, we have a better idea on how to tap the market,” Kumar said.
Muthoot Blue Home Insurance has solutions for both rented and owned houses. While premium for the most basic plan for an owned house starts at Rs 799, that on rented houses starts at Rs 699. In general, the product provides protection for homes, including the building, contents and jewellery; it covers damage caused not only by natural calamities, but also fire, burglary, theft, breakdown and malfunction of household equipment. It provides cover in case of accidental death.
Kumar claims they are providing one of the easiest settlement processes. “Claims for burglary, theft and jewellery will be settled based on only two documents: First Investigation Report and Non-Traceability Report/Case Closure Report from police. For claims under machinery break down, you only need to submit the requisite document from an authorised service station and need no surveyor,” he said.
Home insurance segment in India is growing at a CAGR of 25-30 per cent, as the cover has become important collateral for banks to grant home loans. The demand for similar products has also increased in flood-prone areas ever since Kerala floods last. That said, the overall penetration of home insurance still remains very low in India.