SBI General Unveils ‘Surety Bond Bima’ for Infrastructure Projects

SBI General Insurance, the non-life insurance arm of State Bank of India (SBI), has launched ‘Surety Bond Bima’ to support infrastructure development by providing a security arrangement for infrastructure projects.

Purpose and Function

This product, developed in line with the government’s vision to upscale infrastructure, offers protection against breaches by contractors during both the bidding and performance stages of projects. It insulates both the contractor and the principal (contract awarding authority) from potential risks.

Range of Bonds

The Surety Bond Insurance includes various types of bonds such as bid bonds, advance payment bonds, performance bonds, and retention money bonds. These bonds cater to a diverse group of contractors operating in today’s volatile environment.

Variants

  • Conditional Bonds: Pay a specified sum to the beneficiary upon claim when specific conditions are met.
  • Unconditional Bonds: Allow the beneficiary to claim the money with minimal conditions.

Assurance to Project Owners

The Surety Bond provides assurance to project owners that contractors will complete projects according to agreed terms and conditions. This product aims to bolster confidence in the infrastructure sector by mitigating financial risks and ensuring project completion.

Piyush Shukla

Recent Posts

Do You Know Which is the Largest Wildlife Sanctuary in India?

Did you know that India is home to some of the largest and most diverse…

24 mins ago

Historic Transition in Space: First Private Station Scheduled for 2027

After more than two decades of government dominance in low Earth orbit, space is preparing…

37 mins ago

This Port Named Cleanest Port of the Year At Swachhata Pakhwada 2025

For a India’s cleanliness and sustainability drive, Paradip Port Authority has emerged as the cleanest-performing…

52 mins ago

Manipur Set for New Govt, as Ruling Party Elects This Leader For CM Post

After months of political uncertainty, Manipur is set for a new government. The BJP has…

1 hour ago

Which Fruit is known as the Richest Source of Vitamin C?

Did you know that not all fruits give the same amount of Vitamin C? While…

17 hours ago

New Director Appointment in Defence Department Approved BY ACC, Check Here

In an important decision related to senior bureaucratic postings, the Appointments Committee of the Cabinet…

18 hours ago