Benefits of Surety Bonds
- No Collateral
- Better Liquidity
- Line of Credit Unblocked
Know more about Surety Bonds in INDIA from Surety Seven
Surety Bond (Insurance) provides a guarantee to The Obligee (project awarding authority) against non-compliance of contract or non-completion of project by The Principal (the contractor or construction company).
Types of surety Bonds
- Performance Bond
- Payment Bond
- Maintenance Bond
- Bid Bond
Used in the construction industry to provide a guarantee of performance. They also find uses in import sector and other commercial dealings where a guarantee needs to given against a contract, usually of high value.
Bail Bond & Appeal Bond are used in judicial matters by the parties involved in a legal judicial matter
These bonds include license and permit bonds that may be required for various purposes where a license is to be obtained to carry out an activity. It can be, therefore, stated that Commercial Bonds are customizable as per requirements of The Obligee & The Principal.
What is covered by Surety Bonds?
Surety Bonds in India provide an unconditional coverage to The Obligee (project awarding authority) against losses by The Principal (contractor or construction company). IRDAI (Insurance Regulatory & Development Authority of India) has issued guidelines on Insurance Surety Bonds.
Additionally, Surety Bonds are expected to provide a boost to the construction and infrastructure industry in India as it provides enhanced liquidity to the contractors. This cash strapped contractors are expected to utilize this new found liquidity to lower contract costs and take up more projects.
Frequently Asked Questions
A Surety Bond or Surety Bond Insurance is a contract between three parties—the principal (you), the surety (the insurer) and the obligee (the entity requiring the bond)—in which the surety financially guarantees to an obligee that the principal will act in accordance with the terms established by the bond. Explicitly stated, Surety Bonds are a tool to ensure financial guarantee to The Obligee.
As stated above, Unlike Bank Guarantees, the Surety Bonds
1. Require NO COLLATERAL or Margin money
2. Free up Line of Credit
3. Are Cheaper
Surety Seven revolutionizes the process of obtaining Surety Bonds in India. We empower insurance companies and brokers with advanced technology and expertise, streamlining the issuance of Surety Bonds. For inquiries, kindly connect with us at +91 9911557724 (Mobile) or send an email to firstname.lastname@example.org. By completing our contact form, our dedicated Surety Seven specialist will promptly get in touch with you. Please note, we exclusively collaborate with insurance professionals and brokers and do not directly offer or solicit Surety Bonds.
You can reach out to a Surety Seven expert for guidance on Surety Bond (Insurance). Our experts will provide you FREE CONSULTATION to assess your Surety Bond requirements.
Surety Bonds in India are as per the model Surety Bond guidelines issued by the IRDAI. The format is attached in the link here.