Title Insurance products are currently offered by only a few General Insurers in the Indian market. However, each Insurer’s product features vary in policy terms and conditions, scope of coverage, etc., based on the support received from their reinsurers. It is noted that the number of Title Insurance policies sold are minimal despite the availability of product for the last one and half years and the obligation cast in terms of Section 16(1) of Real Estate (Regulation and Development) Act, 2016 upon the promoter/developers to obtain the said policy. The feedback received from the Government of India reveals that the stakeholders, especially the Developers Associations have flagged the need for standardization in the Title Insurance Products.
In view of the above, the Authority has decided to constitute a Working Group to revisit the product structure of Title Insurance.
2. The Working Group will consist of the following members:
1) Smt. T.L. Alamelu, Member (NL), IRDAI, Chair
2) Smt. Mudita Mishra, Director (Insurance), Department of Financial Services, Ministry of Finance, Government of India, Member
3) Shri. Dinesh Kapila, Economic Advisor (Housing), Ministry of Housing and Urban Affairs, Government of India, Member
4) Shri. S. Devendar Reddy, Chief City Planner, Greater Hyderabad Municipal Corporation, Hyderabad, Member
5) Ms. Aarti Harbhajanka, KPMG India, Knowledge Partner of MahaRERA, representing MahaRERA, Member
6) Shri. Loknath Kar, Chief Legal & Principal Compliance Officer, ICICI Lombard General Insurance Co Ltd., Member
7) Smt. Surabhi Goel, Executive Vice President and Head, Liability and Reinsurance, HDFC Ergo General Insurance Co Ltd., Member
8) Smt. Mukta Sharma, Chief Manager, New India Assurance Co Ltd., Member
9) Shri. Ankur Nijhawan, CEO, AXA France Vie-India Reinsurance Branch, Member
10) Shri. S.P. Chakraborty, General Manager, Actuarial Department, IRDAI, Member
11) Smt. Latha. C, Deputy General Manager, Reinsurance Department, IRDAI, Member
12) Shri. Pradeep Kumar Singh, Manager, Non-Life Department, Member Convener
3. The terms of reference of the working group are as under:
i. To examine the Legal and Regulatory Framework in place and its impact on the marketability of Title Insurance in India.
ii. To study the structure of Title Insurance products available in the current Indian market and analyse the reasons for sluggish demand.
iii. To develop a standard Title Insurance product suitable to Indian Market and recommend measures to spur the demand for the product.
iv. To suggest augmentation of reinsurance capacity within the domestic market.
v. To examine any other aspect relating to Title Insurance products in India.
4. The Working Group shall submit its report in twelve weeks’ time from the date of this order.
(M. Pulla Rao)
Executive Director (General)