India pushes product expansion in title insurance

A comprehensive cover for all promoters is recommended.

There is a need to expand the range of products included in India’s title insurance segment to boost plan marketability, according to a working group formed by the country’s Insurance Regulatory and Development Authority.

Title insurance is a type of indemnity insurance that shields lenders and homebuyers from financial loss sustained from defects in a title to a property.

The group recommends a comprehensive cover for all promoters, allottees and successors as well as a promoter legal expenses policy and an allottee retail policy, both of which are additional options.

The group has forwarded its recommendations, including two new product structures.

Moreover, the draft proposal stated that a loan policy provides no coverage or benefits for the buyer or owner; hence, purchasing an owner policy is independent of the lender’s decision to require a loan policy.