ICICI Lombard, a leading private general insurance company in India, has announced the launch of Surety Insurance. The offering is designed to provide comprehensive risk mitigation solutions for India's burgeoning infrastructure sector, aligning with the country's ambitious goal of becoming a $5 trillion Economy.
Surety insurance acts as a guarantee to a beneficiary (typically an authority or client) that a principal debtor (usually a contractor) will fulfil their contractual obligations. If the contractor fails to honour the terms or contractual commitments, the surety insurance provider will provide financial compensation to the beneficiary. Surety Insurance products provide several benefits compared to traditional bank guarantees. They free up banking lines for other important needs and allow contractors to take on larger and new projects that were previously out of reach. Additionally, these products help reduce debt burdens and offer a better risk management solution.
"With the government's strong infrastructure push, allocating a massive Rs. 11.11 lakh crore or 3.4% of GDP to the sector in FY25, robust risk mitigation tools have become indispensable," stated Gaurav Arora, Chief – UW, Claims, Property & Casualty, at ICICI Lombard. "Coupled with visionary initiatives like the National Infrastructure Pipeline and Make in India, our Surety Insurance products arrive at an opportune time. We understand the challenges businesses face in securing contracts and managing project execution. Our new surety insurance products offer a customised solution to address these needs. By providing both conditional and unconditional options, we empower businesses to choose the right fit for their specific requirements."
By securing surety insurance, businesses can establish themselves as credible and reliable partners, improve their financial flexibility, and unlock opportunities to compete for and win larger projects. This commitment to excellence positions them for sustainable growth and success in today's competitive marketplace.
