Union minister Nitin Gadkari launches India’s first-ever surety bond from Bajaj Allianz
With an aim to have enhanced participation by contractors in project bids, freeing up of collaterals to support working capital requirements Mr. Nitin Gadkari, Minister of Road Transport & Highways, launched the first-ever surety bond insurance from Bajaj Allianz General Insurance.
A surety bond is a risk transfer tool for the Principal and shields the Principal from the losses that may arise in case the contractor fails to perform their contractual obligation. In case the contractor doesn’t fulfill the terms then the Principal can raise a claim on the surety bonds to recover the losses.
Commenting on the occasion, Mr. Nitin Gadkari said, “With this new instrument of Surety Bonds, the availability of both liquidity and capacity will definitely be boosted; such products stand to strengthen the sector. We are confident that expanding our road network will lead to more prosperity, increased employment opportunities, and increased social connectivity. Surety Bond Insurance is the right step in this direction, I am glad to see that Bajaj Allianz General Insurance has taken the great initiative by launching this important product,”.
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