What can Buyers do in case of a building collapse?

(image source : Viacom18 Studios)

Quick Context: Akshay Kumar, married to Kareena Kapoor, buys a flat in the Project launched by the movie’s villain-actor Suman Talwar. After possession and during their occupancy, the building collapses killing Kareena and their unborn child. Akshay unearths the reason for the collapse and gets astonished to know the illegalities and corruption that led to the collapse. Akshay starts vigilance against corruption in government offices. The vigilance by Akshay ultimately results in the untimely death of the villain, but the cause of action arose from the collapse of the building. However, in the normal course of business, the question remains, what will happen to the hefty amount invested in the case of a building collapse due to natural calamity? That is mostly due to natural calamity.

Two scenarios - the time of occurrence of the collapse determines it. First, before the possession and second, after the possession.

Before the possession, Insurance. RERA under section 16 has made it mandatory to take insurance of the land and building/s thereon.

Insurance of what? Insurance of land and building upon it.

Who needs to take insurance? The Promoter (developer or builder etc.) before the possession, buyers may be asked to pay for their respective share of the premium. Upon expiry of insurance after possession, the Society/Apartment.

Another reason - collapse due to man-made reasons - substandard use of materials, poor workmanship, non-supportive type of soil, etc. Promoter shall be responsible and liable to compensate for the losses incurred.

Though the Insurance can’t bring back/closely compensate for the loss of loved ones, the insurance against the project will definitely help to claim the monetary loss of building/s and land.

Looking for more such advice? Or, RERA consultation on your new home? Contact us today!

The information relayed in this blog should not be construed as legal advice. The applicability of information varies on the basis of the circumstances of each case. But feel free to call us for similar advice.