HDFC ERGO has announced the launch of “Title Insurance Policy”, an insurance product in the private insurance segment in India. The risk related to defects in the property title arising out of third-party challenges has been covered.
Have you ever felt the need of an insurance cover — as a property developer and the subsequent owner of a property — against the losses and risks related to defects in property title?
HDFC ERGO has announced the launch of “Title Insurance Policy”, an insurance product in the private insurance segment in India. The risk related to defects in the property title arising out of third-party challenges has been covered. The defects in the title prior to the start date of the policy owing to the property belonging to someone other than the insured is covered. Also, the policy promises to indemnify against an act of fraud or forgery by a third party; protecting insurer’s right over the title of the property. It also indemnifies against the title of the property is subject to unknown burdens or discharge of burdens which may have been imposed in historic deeds executed prior to the start date of the policy. This policy also covers the defence and legal costs.
“We are always looking at opportunities to offer protection to the customers from any unforeseen financial losses. Title insurance is one such innovative product that will provide customers’ the peace of mind from Title risks related to the land on which the property rests. It is crucial and a must-have for developers not only because it is mandatory but is as an effective risk transfer mechanism.” said Anuj Tyagi, Executive Director and Chief Distribution Officer, HDFC ERGO General Insurance Company.
Emerging requirements of the Real Estate Regulation and Development act 2016 (RERA) led to the development of the product. The act mandates purchase of the Title insurance for all the new and ongoing property developments registered.
This Title insurance policy will be beneficial to real estate developers, property investors and housing finance companies.