'Title Insurance' on cards to protect people in case of defective property titles

NEW DELHI: Aiming to provide cover to people in case of defective property titles and related issues, insurance regulator IRDAI on Friday proposed introducing a new product in India, ‘ Title Insurance’.

The regulator said it has decided to constitute a 7-member working group to study the scope of ‘Title Insurance’ in the Indian market. IRDAI’s senior joint director Suresh Mathur has been appointed chairman of the group and asked to submit report in two months.

The group will study the need and scope for such a product in the domestic market vis-à-vis the existing practices in the international market and identify the insurable risk and define the compensation structure.

It has also been asked to suggest the design of the product and the framework for assessment of risk, pricing, reserving and accounting with actuarial inputs for the long term sustainability of the product.