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

India’s Defence Spending Rises to $92.1 Billion, Ranks Fifth Globally: SIPRI

India has been emerged as the fifth-largest military spender in the world in the year…

7 minutes ago

India’s IIP Growth Slips to 4.1% in March 2026, Lowest in Five Months

The industrial output growth of the country eased to the 4.1% in March 2026 and…

54 minutes ago

Which Place is known as the Watermelon Capital of the World?

Watermelon is one of the most loved summer fruits in the world. It grows best…

1 hour ago

India Submits Updated Climate Targets for 2031–2035 to UNFCCC

India has submitted the its updated targets for the 2031-2035 to the UN Framework Convention…

2 hours ago

India Announces 3-Year IP Fee Waiver for Sports Sector to Boost Innovation

Honorable Union Commerce and Industry Minister Shri Piyush Goyal have announced the major push for…

3 hours ago

Which Book is known as the Bible of English Grammar?

Learning grammar is very important when studying any language, especially English. English is widely used…

3 hours ago