SBI General Launches Surety Bond Insurance for Infrastructure Projects

SBI General Launches Surety Bond Insurance for Infrastructure Projects

SBI General Insurance, a subsidiary of the State Bank of India, introduced a new insurance product on Tuesday called "Surety Bond Bima." This product is aimed at providing financial security for infrastructure projects by safeguarding both contractors and the project owners.

The Surety Bond Insurance is designed to offer protection in case of a breach of contractual terms by contractors, covering both the bidding and performance stages of a project. It includes various types of bonds such as bid bonds, advance payment bonds, performance bonds, and retention money bonds, offering comprehensive protection across different phases of project execution.

Catering to a wide range of contractors operating in the current unpredictable market, the product is available in two variants—conditional and unconditional. A conditional bond allows payment to the beneficiary only when specified conditions are fulfilled, while an unconditional bond allows the beneficiary to claim payment with minimal requirements.

The launch of this product aligns with the government's goal of accelerating infrastructure development. It provides an additional layer of assurance to project owners that contractors will complete their projects according to the agreed terms.