New Delhi: The title changes each time the property is transferred to another person. Therefore, while transferring the property, there will be some gaps left during the transfer process and some flaws in the title. To overcome this, India’s Department of Insurance Regulation and Development (Irdai) has introduced a title insurance policy.
Protect the interests of individual buyers after taking over the physical ownership of the property, taking into account the requirements of the promoter’s legal protection in the early stages of project development during financial valuation, registration and approval by the RERA authorities. For regulators, title insurance products suitable for current promoters / developers and commercial real estate buyers.
Regulators are currently asking non-life insurers (excluding independent health and professional insurers) to launch new title insurance products for promoters / developers, allottees, and commercial facility buyers. ..
Title insurance provides developers, assigners, and homebuyers with compensation for title defects / defects resulting from these challenges.
According to Irdai’s circulation, “Ownership insurance is a type of compensation insurance that protects potential owners of real estate from financial loss due to deficiencies in real estate ownership. This policy is insured. Events that occurred before the policy’s issue date. “
According to the notification, the main purpose of the new title insurance products is to cover:
(A) Promoters / developers who prefer to choose the lowest legal defense costs.
(B) The end user, that is, the owner / transferee / individual purchaser / financial company of the real estate unit to protect it from future proceedings.
TA Ramalingam, Chief Technical Deficit of Bajaj Allianz General Insurance, said: Promoters / Developers in the Indian Market; In this circulation, regulators are proposing to introduce retail policies to assignees / individual buyers. Individual buyers and lenders of the property can choose it at the time of ownership, and in addition, IRDAI has a promoter statutory cost (defense cost) policy that compensates for legal defense costs only against proceedings that disagree with the project title. Is recommended. We provide non-life insurance for the entire duration of existing product projects currently on the market. This allows customers to choose the insurance period according to their requirements. “
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