Insurance surety bonds worth over Rs 100 billion issued for NHAI contracts

Over Rs 100 billion worth of insurance surety bonds (ISBs) have been issued by insurance companies for contracts with the National Highways Authority of India (NHAI). For NHAI contracts, 12 insurance companies have given about 1,600 ISBs as bid security and 207 ISBs as performance security up to July 2025, totalling around Rs 103.69 billion. Insurance companies operate as “surety” in insurance surety bonds, offering a financial guarantee that the contractor will complete its obligations in accordance with the terms of the agreement. NHAI has been advocating the use of ISBs as an additional means of submitting bid security or performance security deposit.