A few general insurance firms offer title insurance to developers, housing societies and their shareholdersIn order to protect owners of real estate from challenges to their property titles, a working group of Insurance Regulatory and Development Authority of India (Irdai) has recommended a comprehensive insurance cover for all promoters, allottees and successors. It also recommended legal expenses policy for land title owners and developers/promoters and retail policy for allottees, individual customers and financiers who purchase units in Real Estate (Regulation and Development) Act (RERA) projects.
The Real Estate (Regulation and Development) Act, 2016, gave statutory recognition to the concept of title insurance. Title insurance is an indemnity cover which insures against financial loss from defects in title of a real property.
Title insurance helps to defend against a lawsuit attaching the title or reimburse the insured for the actual monetary loss incurred up to the limit prescribed in the policy. At present, title insurance products are offered by a few general insurance companies and they cover the developer, the society and all shareholders
