Buying a new home is a milestone for most people. But this exciting experience can be marred if the ownership of your newly bought property is repudiated in a court of law.
Property disputes form a major part of India’s judicial litigation. According to the Centre for Policy Research, around 66% of all civil cases in the country are related to land/property disputes.
These title disputes arise when the right to possession and ownership of a property is contested on legal grounds. This happens due to various reasons like:
- Claims made by legal heirs or co-owners
- Disputes over easement rights
- Wrong representation by the seller, etc.
If such disputes occur, large amounts of money can go into legal expenses, taking a toll on your finances and well-being.
However, India’s Insurance regulator, IRDAI, is determined to ease this financial burden by introducing Title Insurance to consumers!
A Title Insurance policy protects the owner of a property against financial loss arising out of a defect in the title. It can be taken by building developers/promoters as well as individual home-owners, indemnifying them against all legal expenses or lawsuits initiated by third parties claiming ownership of their property.
What’s interesting is that this kind of a policy is retrospective in nature- meaning even if you bought your property years ago but have taken a Title Insurance cover on it now, you would still be indemnified against any legal ownership issues arising in the future.
But keep in mind, this policy will NOT cover you if your property has been built on illegal land which could have been discovered through an initial survey.
Title Insurance has not yet been made mandatory by the IRDAI, but insurers are likely to design and introduce attractive products in this domain soon.
Interested to learn more about Insurance? Find out how the government is using Insurance as a tool to boost India's exports