This milestone comes just two months after the company launched its Surety Insurance Bond offerings.
FinTech BizNews Service
Mumbai, June 25, 2024 – TATA AIG General Insurance Company, one of India’s leading general insurance companies, has announced the issuance of the largest Performance Surety Bond in the country, valued at over ₹100 crores. This milestone comes just two months after the company launched its Surety Insurance Bond offerings.
Surety Insurance Bonds are designed to protect project owners or beneficiaries against losses arising from a contractor’s non-performance, non-fulfilment, or breach of contractual obligations as stipulated in the agreement or bidding documents. Available in both conditional and unconditional formats, TATA AIG’s Surety Insurance Bonds facilitate smoother execution of infrastructure projects and commercial contracts in both government and private sectors, catering to diverse project needs.
Deepak Kumar, Senior Executive Vice President & Head - Reinsurance, Credit & Aviation Insurance at TATA AIG General Insurance, stated, "TATA AIG is committed to serving its marquee clients in the infrastructure sector and partnering with them in their growth. Through this issuance, we are standing by our client to fulfil their contractual obligations throughout the entire tenure of the project, which spans seven years."
Mr. Kumar further emphasized, "This issuance is a testament to Tata AIG’s dedication to fostering growth and development through innovative insurance solutions for the country’s infrastructure companies."
With an estimated requirement of approximately ₹90-lakh crore in bank guarantees over the next five years, the quick acceptance and success of surety insurance bonds are critical to India’s ambition of becoming the third-largest economy by 2030. TATA AIG’s Surety Insurance Bond is poised to play a pivotal role in India’s infrastructure landscape, enabling contractors to undertake larger projects with greater financial flexibility and confidence. The current product suite includes all contract bonds permitted under IRDAI guidelines, such as bid performance, advance payment, and retention money bonds.
