Some problems related to surety bonds have been resolved: IRDA
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A surety bond or surety bond is an insurance product that transfers risk and indemnifies the insured company against losses incurred if the contractor backs out of the terms of the contract
New Delhi. Insurance Regulatory and Development Authority of India (IRDAI) chief Debashish Panda said on Thursday that some issues related to surety bonds have been resolved and other changes can also be made if needed. A surety bond or surety bond is an insurance product that transfers risk and indemnifies the insured company against losses if the contractor backs out of the terms of the contract. IRDA chairperson Panda said at an event of the Confederation of Indian Industry (CII), “We have tried to solve some of the troubling issues related to surety bonds. If there is a need for further changes in this, then it will be considered.
Let the suggestions come from the industry in this regard, we will examine them.” Road Transport and Highways Minister Nitin Gadkari has said that the Ministry of Finance will allow contractors associated with NHAI and NHIDCL to convert their bank guarantees into surety bonds with retrospective effect Have given Earlier, Gadkari had said that changes would be made to make the surety bond more attractive as no contractor wanted to take it due to strict IRDA provisions. To a question about surety bonds, Panda said IRDA is in constant touch with insurance companies to make it attractive. In this sequence, IRDA has removed the additional layer of insolvency provisions.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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