India’s First Surety Bond Insurance

December 19, 2022
Current Context: India will launch its first surety Bond Insurance Product on December 19, 2022.
India’s First Surety Bond Insurance
  • This is launched by the Union Minister of Road, Transport and Highways, Shri. Nitin Gadkari.
  • This bond is launched for Infrastructure projects.
  • This bond will reduce the dependence of infra developers on bank guarantees.
  • This surety bond is launched by the Bajaj Allianz General Insurance company.
  • This will help in improve road connectivity and increase employment opportunities.
  • A surety bond is a tool for the Principal and shields the Principle from the losses that may arise in case the contractor fails to perform their contractual obligation.
  • The insurance company will provide security arrangements for principal and infrastructure projects.
  • The principle can be claimed by the insurance company if the contractor doesn’t fulfill the requirement.

Question:

Q.1 The first surety Insurance Bond in India is launched by?
a. Nirmala Sitharaman
b. Nitin Gadkari
c. Jaishankar
d. Amit Shah

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