TATA AIG General Insurance has rolled out Surety Insurance Bonds with an aim to support the government’s ambitious infrastructure development agenda, which has been allocated 3.3% of the GDP in FY 2024, the insurer said in a statement.
“We are confident that this product will not only facilitate smoother project execution, but we will also contribute in our own way to the infrastructure segment towards India’s goal of becoming a USD 5 trillion economy. With this range of surety bonds, we are cementing our dedication to foster growth and development through innovative insurance solutions for the country’s infrastructure companies,” Deepak Kumar, Senior Executive Vice President & Head – Reinsurance, Credit & Aviation Insurance, TATA AIG General Insurance, said while commenting on the launch.
What is Surety Insurance Bond?
A Surety Insurance Bond provides coverage to the project owner or beneficiary against losses arising from the contractor’s non-performance, non-fulfillment, or breach of contractual obligations as stipulated in the agreement or bidding documents.
According to the statement, TATA AIG’s current product suite includes the contract bonds permitted under IRDAI guidelines, such as bid bonds, performance bonds, advance payment bonds, and retention money bonds.
As infrastructure development is poised to be the growth engine of India’s journey to become a USD 5 trillion economy, Surety Insurance Bonds have emerged as a robust alternative to traditional bank guarantees for contractors, the insurer said in the statement.
Also Read: Tata Motors to Invest Rs. 43,000 Crore on New Products and Tech in FY25
By opting for Surety Insurance Bonds, contractors can unlock capital and enhance their bidding capacity, thereby overcoming liquidity and capital constraints, it added.
The Surety Insurance Bonds will be available across both conditional and unconditional formats. “TATA AIG’s Surety Insurance Bonds have been designed to facilitate smoother execution of infrastructure projects and commercial contracts across both government and private sectors, catering to diverse project needs,” the insurer said.
Want to learn the art and science of managing your money? The 1% Club can help. Details here
