One of the top general insurance providers in India, TATA AIG General Insurance, has introduced Surety Insurance Bonds to help finance the government’s large-scale infrastructure development programme, which is expected to receive 3.3% of GDP in FY 2024.
Surety Insurance Bonds have become a strong substitute for traditional bank guarantees for contractors, as infrastructure development is expected to be the driving force behind India’s economic growth to reach a GDP of USD 5 trillion.
Contractors can overcome financial and liquidity constraints by using Surety Insurance Bonds to increase their bidder capacity and liberate capital.
TATA AIG’s Surety Insurance Bonds, which are offered in both conditional and unconditional formats, are intended to support a variety of project requirements by enabling the seamless execution of commercial contracts and infrastructure projects in the public and private sectors.
A Surety Insurance Bond shields the project owner or beneficiary from financial damages resulting from the contractor’s failure to execute, fulfil, or adhere to the terms of the contract as outlined in the bidding documents or agreement.
The contract bonds allowed by IRDAI regulations, such as bid, performance, advance payment, and retention money bonds, are included in TATA AIG’s current product lineup.
Commenting on the launch, Deepak Kumar, Senior Executive Vice President & Head – Reinsurance, Credit & Aviation Insurance, TATA AIG General Insurance, said, “With the launch of our Surety Insurance Bond, TATA AIG is committed to addressing the critical liquidity and capital challenges faced by contractors in the infrastructure sector. 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.”
TATA AIG’s Surety Insurance Bond is set to play a pivotal role in India’s infrastructure landscape, enabling contractors to undertake larger projects with greater financial flexibility and confidence.
For more information, please log on to www.tataaig.com