Union Minister Nitin Gadkari launches one of India’s first-ever Surety Bond Insurance

Current Affairs

  • Union Minister for Road Transport and Highways Shri Nitin Gadkari launched one of India’s first-ever Surety Bond Insurance products from Bajaj Allianz.
  • Commenting on the product launch, Shri Gadkari said “India is well on its path to becoming a $ 5 Trillion economy and achieving the dream of our honorable Prime Minister, Shri Narendra Modi Ji; insurance will play an important role in this growth.
  • To realize Modi Ji’s dream, it is important that infrastructure projects are executed at a faster speed; infrastructure, and notably roads, are vital to the economic and social growth of our country. With this new instrument of Surety Bonds, the availability of both liquidity and capacity will definitely be boosted; such products stand to strengthen the sector. We are confident that expanding our road network will lead to more prosperity, increased employment opportunities, and increased social connectivity.
  • Surety Bond Insurance is the right step in this direction, I am glad to see that Bajaj Allianz General Insurance has taken the great initiative by launching this important product.”
  • Surety Bond Insurance will act as a security arrangement for infrastructure projects and will insulate the contractor as well as the principal.
  • The product will cater to the requirements of a diversified group of contractors, many of whom are operating in today’s increasingly volatile environment.
  • The Surety Bond Insurance is a risk transfer tool for the Principal and shields the Principal from the losses that may arise in case the contractor fails to perform their contractual obligation.

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