India’s first Surety Bond Insurance product to be launched soon

India’s first surety bond insurance product is expected to be launched. The surety bond insurance will help enhance the sector’s liquidity by freeing up contractors’ working capital from bank guarantees. It is estimated that banks require 30-50 per cent of the cash money margin (from smaller cons­tru­ction companies), which is then stuck in bank guarantees. This insura­nce bond’s premium is expected to be lower to make the product affordable.