RBE No. 111/2007: House Building Advance (HBA) – Insurance of Houses/ Flats

No.F(E)Spl/2007/ADV3/5, dated 05.09.2007

Sub: Inclusion of private Insurance Companies approved by the Insurance Regulatory Development Authority (IRDA) for the purpose of insurance of the houses/ flats constructed/ purchased with the help of House Building Advance.

A copy of Ministry of Urban Development’s O.M.No.I-17015/1/2003-H-III, dated 03.03.2003 on the above subject is sent herewith for information and guidance, instructions contained therein would also applied to Railway servants.

Ministry of Urban Development &

Poverty Alleviation, Government of India

O.M.No.I-17015/1/2003-H-III, dated 03.03.2003

OFFICE MEMORANDUM

Sub: Amendment to Rule 7(b) of House Building Advance (HBA) Rules – Inclusion of Private Insurance Companies approved by the Insurance Regulatory Development Authority (IRDA) for the purpose of insurance of the houses/ flats constructed/ purchased with the help of House Building Advance.

1. Rule 7(b) of the House Building Advance Rules stipulates that immediately on completion for purchase of the house, as the case may be, the Government servant concerned shall insure the house, at his own cost with the Life Insurance Corporation of India for a sum not less than the amount of the advance and shall keep it so insured against damage by fire, flood and lightening till the advance together with interest is fully re-paid to Government and deposit the policy with Government. Also by subsequent orders issued by Government, from time to time, Government servants have been allowed to get their houses/ flats insured from any of the four Nationalized General Insurance Companies, viz., New India Insurance Co. Ltd., National Insurance Co. Ltd., Oriental Fire & General Insurance Co. Ltd. and United India Fire & General Insurance Co. Ltd.

2. Recently, Government of India have constituted the Insurance Regulatory Development Authority (IRDA) under an Act of Parliament and permitted private companies to operate in the field of general and Life Insurance sector.

3. In view of the above decision of Government of India to permit private companies in the field of general and life insurance, it has been decided in consultation with Ministry of Finance that henceforth, Government servants may be allowed to get their houses/ flats, constructed/ purchased with the help of House Building Advance, insured from either nationalized General Insurance Companies or the private insurance companies which have been granted certificate of registration by the Insurance Regulatory Development Authority (IRDA).

4. This issues with the approval of Joint Secretary & Financial Advisor (UD & PA).

Download Railway Board Circular RBE No. 111/2007

Forward reference ⇒ RBE No. 158/2007