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

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