News & Views on Indian Real Estate

Monday, June 09, 2008

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.

manish said...

This is good that real estate sector is also coming under insurance cover.

Anonymous said...

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