Surety Bond
Silent features are:
- The product caters to infrastructure projects of government/private sector
- Bond wordings tailored to suit requirements
Since its introduction in the year 2022, many of the beneficiaries have started have started accepting bonds.
In order to encourage investment in infrastructure projects in India, Government of India allowed Insurance Companies to issue Surety Bonds. Surety bonds are considered as an alternative/substitute to bank guarantee.
There are four types of bonds:
- Bid Bonds
- Performance Bonds
- Advance Bonds
- Retention Bonds