Surety insurance coverage acts as a assure to a beneficiary (usually an authority or consumer) {that a} principal debtor (normally a contractor) will fulfil their contractual obligations.
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If the contractor fails to honour the phrases or contractual commitments, the surety insurance coverage supplier will present monetary compensation to the beneficiary.
“Surety Insurance coverage merchandise present a number of advantages in comparison with conventional financial institution ensures. They release banking traces for different necessary wants and permit contractors to tackle bigger and new tasks that have been beforehand out of attain,” the non-public sector common insurer mentioned in a press release.
Moreover, these merchandise assist cut back debt burdens and provide a greater danger administration answer.
“With the federal government’s robust infrastructure push, allocating a large ₹11.11 lakh crore or 3.4 per cent of GDP to the sector in FY25, sturdy danger mitigation instruments have change into indispensable.
“Coupled with visionary initiatives just like the Nationwide Infrastructure Pipeline and Make in India, our Surety Insurance coverage merchandise arrive at an opportune time. We perceive the challenges companies face in securing contracts and managing mission execution. Our new surety insurance coverage merchandise provide a customized answer to handle these wants,” mentioned Gaurav Arora, Chief – Underwriting, Claims, Property & Casualty, at ICICI Lombard.
The corporate’s surety insurance coverage merchandise provide each conditional and unconditional choices so that companies can select the fitting match for his or her particular necessities.
By securing surety insurance coverage, companies can set up themselves as credible and dependable companions, enhance their monetary flexibility, and unlock alternatives to compete for and win bigger tasks, ICICI Lombard GIC mentioned.
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