Suppose you bought a property or land 20 years ago, but have taken title insurance now. Despite this, the date on which the land was purchased, you will get the protection of ownership from that date.
Many times it happens that you are not aware and a property already sold is sold to you. That too with full money. There are many such cases, especially in cities. This is a kind of fraud that many people are suffering from. Now if this happens then you may be entitled to compensation. All you have to do is take a title insurance policy from a general insurance company.
The title insurance policy will be for this purpose that if someone wrongfully claims your property or house and the matter goes to the court, then you will be entitled to compensation. For example, suppose you bought a property. You did not know in advance that there is a dispute regarding the ownership of that land. It is possible that you have bought the same land which has been bought by someone before. Legal hurdles abound in such a situation. You may lose your ground in court, you may lag behind in paperwork, and land or property may keep falling out of your hands. Then the title insurance policy will help you. This policy will compensate you for the loss incurred in the purchase of land as compensation.
The title insurance policy has been brought out by the Insurance Regulatory and Development Authority of India (IRDAI). It has been said about the title insurance policy that if there is a dispute regarding the title i.e. ownership of a property or land purchased, due to which there is any financial loss to the owner, then it will be compensated through the policy. Its direct fund is that you can take a title insurance policy to protect the land or property that you take. Just like insuring the house against fire, flood or natural calamity. Similarly, this policy provides you protection against the risk arising out of the title.
Policy Features
The biggest feature of the title policy is that it also provides protection to the already purchased land. Suppose you bought a property or land 20 years ago, but have taken title insurance now. Despite this, the date on which the land was purchased, you will get the protection of ownership from that date. It does not matter when you bought the title insurance policy. This rule has been made because there are many cases in which disputes about ownership arise later.
Only small buyers of property or land will not benefit from this policy. Big financiers and builders will also benefit from this. The financiers and builders are also cheated. They buy a big plot and later the title dispute arises on it. There will be only two situations in this. Either the person who bought the land will have a decree in his favor and the land will be in his name. If the owner loses the case in court, he will get compensation from the title policy.
What does IRDAI say
IRDA advises that those who are buying a house or those who already own a property, they must take this policy. The term of this policy is 12 years. That is, from the day you got the possession of the house, this policy will work for 12 years. In this, the amount of Sum Assured or Sum Assured has been kept equal to the amount paid in the purchase. Suppose you bought a property for 20 lakhs, then the title insurance policy would be 20 lakhs. This policy was already made mandatory for the developer but it could not run due to high premium.
Where the policy will not work
Keep in mind that there will not be a policy for a house that has already been built on forcibly seized land or encroached plot. This policy will not work even if you have violated the rules of the environment in building a house. While buying a house, take information about property tax etc., if there is any due on it, also take information about it as it will not be covered in title insurance. This policy is yet to start and companies will come up with their own plans. It is believed that this will be right for India because all kinds of rivalries are seen here regarding ownership. People can get relief from this.
