In response to the government’s objective to upgrade infrastructure development, this product was created. Anand Pejawar, the full-time director of SBI General Insurance, said
The General Surety Bond Bima (Conditional & Unconditional) insurance policy was introduced on Tuesday by SBI General Insurance, the non-life insurance division of State Bank of India (SBI).
Infrastructure projects will use surety bond insurance as a security measure to protect both the principle (the person who awards the contract) and the contractor.
According to a statement by SBI General, the product is intended to offer protection against contractual violations by contractors during either the project’s performance phase or the bidding phase.
The Surety insurance product consists of a wide range of bonds, such as bid bonds, advance payment bond, performance bond, and retention money bond, it said.
He claimed that the product satisfies the needs of a variety of contractors, many of whom are working in the present day’s increasingly unstable environment.
The announcement further noted that the product comes in two variations: conditional and unconditional.
A conditional bond allows the beneficiary to collect the money nearly without any conditions, but an unconditional bond allows the recipient to get the money almost immediately upon claim when certain requirements are met.
Anand Pejawar, the full-time director of SBI General Insurance, stated that this product was created in response to the government’s ambition to upgrade infrastructure development.
The Surety insurance provides an assurance to the project owner in the form of a Surety Bond that the contractor would complete the project as per the agreed terms and conditions.
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