Insurance cover for real estate deals coming soon
Risks associated with property transactions in India could reduce with
at least three insurers submitting details of the property title
insurance products they wish to launch to insurance regulator Insurance
Regulatory Development Authority, or Irda. ICICI Lombard, National
Insurance Co. Ltd, and HDFC Standard Life have filed details of their
products with Irda, while others are working on their products. The new
products are a sign of the growing maturity of the insurance and real
estate businesses in the country. Several real estate firms
have sold shares to the public in the past two years, becoming
accountable to a larger group of shareholders for their dealings. For
insurance firms, the products are a way to increase their portfolio of
offerings and start tapping an area where there is likely to be no
dearth of business. Property transactions
in India are inherently risky because the government doesn’t guarantee
ownership of land. It merely endorses property transactions and earns
revenue from them. Experts say six out of every 10 court cases filed or
waiting to be resolved in India relate to property. Not all buyers, however, will be able to benefit from the new products being launched.
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