Title Insurance Remains Peripheral in Indian Real Estate Despite RERA Framework

Title insurance, though permitted under India's Real Estate (Regulation and Development) Act, 2016, remains marginal in routine property transactions. The product protects owners, lenders, and other parties against financial loss from title defects, liens, or adverse claims existing on the policy date.

Structural barriers prevent mainstream adoption. Indian land transactions rely on fragmented records, document-heavy title investigations, local customs, and a presumptive rather than conclusive title system. While title insurance can compensate specific losses, it cannot transform uncertain public records into clear title.

Key questions facing the sector concern which risks should be covered, premium allocation, and whether insurance complements or substitutes for due diligence. Experts note that title insurance functions better in defined institutional portfolios than in routine conveyancing, and broader reforms are needed to build an efficient risk-pricing ecosystem.