HDFC Ergo, a general insurance company, has recently launched title insurance, made mandatory under the Real Estate (Regulation and Development) Act, or RERA. This kind of insurance cover protects developers against any cost/loss arising out of title claims on the land of the project by any third party. Earlier, several projects were delayed or stalled due to title disputes, resulting in a delay in possession and rise in costs due to the compensation paid. The policy can be purchased by developers and then assigned to the association of allottees or allottees/members of housing societies who will be the ultimate beneficiaries. Investment
Sukanya Samriddhi's Minimum Deposit Lowered
Sukanya Samriddhi, one of the most popular schemes launched by the government for the welfare of girl child, has lowered the minimum investment amount from `1,000 to `250 per year to gain traction. One can invest a maximum of `1.5 lakh per year in the name of a girl child. The deposits made, the interest earned and the final payout at maturity are tax-free. Just like other small savings schemes, the interest rate here is revised quarterly and depends on the yield of government securities with a similar maturity period. Currently, it is offering an interest rate of 8.1 per cent. Accounts can be opened in all authorised bank branches and post offices. Insurance
No Auto Insurance Without PUC Certificate
In a bid to strengthen emission norms, the Insurance Regulatory and Development Authority of India (IRDAI) has told insurers no vehicle can be insured without a valid PUC (pollution under control) certificate. The IRDAI notification follows a Supreme Court directive issued in 2017. A PUC certificate is mandatory one year after a vehicle is first registered. The certificate has a six-month validity period post which it must be renewed. Moreover, every vehicle owner has to buy third-party auto insurance to compensate for any damage made to a third party by the insured. Cheque Bounce Cases
Quick Resolution On The Cards
With the Parliament passing the Negotiable Instruments (Amendment) Bill, the undue delay in lakhs of cheque bounce cases pending in various courts may soon be resolved. As per the new regulation, any court handling such a case can ask the drawer of the cheque to pay interim compensation to the complainant. However, this amount will not exceed 20 per cent of the cheque amount. The compensation will have to be paid within 60 days of the court order, but if the court is satisfied, it can grant an extension of 30 days. In case the drawer of the cheque is acquitted, the complainant will have to pay back the entire compensation along with interest at the prevailing bank rate.