HDFC ERGO launches title insurance cover for property developers
HDFC ERGO, country’s third largest non-life insurance provider in the private sector, yesterday announced the launch of ‘Title Insurance Policy’, a first of its kind product in the private insurance segment in India.
This specialty insurance product provides Indemnity to property developers and the subsequent owners of the property against losses and risks related to defects in Property Title arising out of Third Party challenges not discovered prior to the commencement date of the policy due to the Title of Property belonging to someone other than the Insured, Descriptions & Plans in Historic deeds of the property being inadequate, Historic transaction being subject to an act of fraud or forgery by a third party that adversely affects insured’s rights over the title of the property, Title to the Property being subject to Unknown Burdens or Discharge of Burdens which may have been imposed in historic deeds executed prior to the commencement date etc.
Moreover, defence costs / Legal costs incurred are also covered under the policy. Also, certain known defects in the title, may also be covered under the policy by specific underwriting assessment for an additional premium.
The product has been developed stemming from the requirement of the Real Estate Regulation and Development Act 2016 (RERA), which mandates the purchase of Title Insurance for all new and ongoing property developments registered with the regulatory body.