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Bengaluru, May 28, 2024: TATA AIG General Insurance, one of India’s leading general insurance companies, has rolled out Surety Insurance Bonds, with an aim to support the government’s ambitious infrastructure development agenda, which has been allocated 3.3% of the GDP in FY 2024.
As infrastructure development is poised to be the growth engine of India’s journey to become a USD 5 trillion economy, Surety Insurance Bonds have emerged as a robust alternative to traditional bank guarantees for contractors. By opting for Surety Insurance Bonds, contractors can unlock capital and enhance their bidding capacity, thereby overcoming liquidity and capital constraints. Available across both conditional and unconditional formats, TATA AIG’s Surety Insurance Bonds have been designed to facilitate smoother execution of infrastructure projects and commercial contracts across both government and private sectors, catering to diverse project needs.
A Surety Insurance Bond provides coverage to the project owner or beneficiary against losses arising from the contractor’s non-performance, non-fulfillment, or breach of contractual obligations as stipulated in the agreement or bidding documents. TATA AIG’s current product suite includes the contract bonds permitted under IRDAI guidelines, such as bid bonds, performance bonds, advance payment bonds, and retention money bonds.
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.