The Narendra Modi-led Union Government plans to offer insurance cover for the repair work of new buildings. The Government along with the municipal corporation of Delhi and Mumbai is discussing the same issue with insurance companies in order to draft a policy for buildings, similar to that in the European countries.
According to an official, this insurance cover will work for the repair in case the building gets damaged within the first 10 years of construction. Any developer/builder can buy this insurance scheme by paying a premium for the same.
The Brihanmumbai Municipal Corporation i.e. the BMC also gave a presentation to the Union Government on regularizing the quality of construction work. According to an official, the absence of an approach to deal with the damage to newly constructed buildings has affected Mumbai’s ranking in the World Bank’s ease of doing a business index. This ranking is listed for 190 countries.
The building construction process plays an important role in determining a city’s ranking and thus important changes are the need of the hour in the system to ensure structural stability in the buildings an official said. Last year, the State Government came up with the regulation of a building’s structural engineer under which the architect will be responsible for any defect in the building for 10 years of construction. Unfortunately, this didn’t help Mumbai the capital city of Maharashtra in improving its ranking.
Currently, the developer is not held responsible for the defect in the building and thus the residents are required to pay for the repair work. Ajoy Mehta, the BMC commissioner gave a presentation to the Union ministry of housing and urban affairs on the same.
A housing society can drag the developer in the court even if the structural engineer and architect close their business after completing the construction of a building although it will be a legal dispute to be resolved. The insurance cover will come handy in this situation as the housing society can get the building repair work done an official said.