New Delhi: Around 700 insurance surety bonds worth around Rs 3,000 crore have been issued so far by various insurance companies, an official statement on Wednesday said.
The statement further said that state-owned NHAI has so far received 164 insurance surety bonds, including 20 bonds for performance security and 144 bonds for bid securities.
Insurance surety bonds are financial instruments, where insurers act as 'sureties' and provide a financial guarantee that the contractor will fulfill its obligation according to the agreed terms.
Widespread adoption of such tools will help strengthen infrastructure development in the country.
According to the statement, the Finance Ministry has made Insurance Surety Bonds at par with bank guarantees for all government procurement, and NHAI urges insurance companies and contractors to use Insurance Surety Bonds as an additional mode of depositing bid security. doing, and/or execution security.
NHAI on Wednesday organized a workshop in New Delhi on implementation of Insurance Surety Bond (ISB) for NHAI contracts.
The statement said the objective of the workshop was to review the progress made in the implementation of the Insurance Surety Bond and encourage stakeholder participation for wider adoption of the instrument.
Road, Transport and Highways Minister Nitin Gadkari on December 19, 2022 launched the country's first surety bond insurance product to reduce the dependence of infra developers on bank guarantees.
Bajaj Allianz General Insurance's products have been developed in response to demand identified by industry and government.
The statement further said that state-owned NHAI has so far received 164 insurance surety bonds, including 20 bonds for performance security and 144 bonds for bid securities.
Insurance surety bonds are financial instruments, where insurers act as 'sureties' and provide a financial guarantee that the contractor will fulfill its obligation according to the agreed terms.
Widespread adoption of such tools will help strengthen infrastructure development in the country.
According to the statement, the Finance Ministry has made Insurance Surety Bonds at par with bank guarantees for all government procurement, and NHAI urges insurance companies and contractors to use Insurance Surety Bonds as an additional mode of depositing bid security. doing, and/or execution security.
NHAI on Wednesday organized a workshop in New Delhi on implementation of Insurance Surety Bond (ISB) for NHAI contracts.
The statement said the objective of the workshop was to review the progress made in the implementation of the Insurance Surety Bond and encourage stakeholder participation for wider adoption of the instrument.
Road, Transport and Highways Minister Nitin Gadkari on December 19, 2022 launched the country's first surety bond insurance product to reduce the dependence of infra developers on bank guarantees.
Bajaj Allianz General Insurance's products have been developed in response to demand identified by industry and government.
