Title is a legal term used to identify the true owner or owners of a property. The biggest risk faced by a home owner is his property being declared illegal by a competent court in the country. Keeping this in mind, the insurance regulator, IRDAI has asked general insurance companies (except health insurers) to launch a new title insurance product for individual home owners and allottees.
Insurance regulator IRDA has taken steps to protect property buyers from false documents. It has asked the general insurance companies to submit the property purchase document i.e. insurance policy to protect against title risk in a revised format at the earliest.
Title insurance is a form of indemnity insurance. It protects the potential owner of the property from financial loss due to discrepancies in the title of the real property.
Loss will be covered by title insurance
The Insurance Regulatory and Development Authority of India (IRDAI) has come up with suggestions to bring in title insurance products to ‘cover’ liability as per law of companies (developers) as well as individuals for loss due to wrongful title. group was formed.
Based on the group’s recommendation, IRDA has asked general insurance companies to bring an insurance policy with the purchase document of the property.
Title insurance in India is in its infancy. IRDA’s circular on this will help in increasing its acceptance in the country. Currently, this product is available only to promoters/developers in the Indian market, in this circular the regulator has suggested introducing a retail policy for allottees/individual buyers.