Bonds

We cover the following bond insurance options under our portfolio:

Bid Bonds

Bid Bonds are required in connection with the submission of tenders for contracts with private/public owners. The subject guarantees that the bidder (Contractor) will enter the contract and furnish the Prescribed Performance Bond if awarded the contract. Suppose the contractor is afterward unable to enter into the contract and to furnish the required Performance Bond. In that case, the insurance company is liable to pay the bond amount to the owner.

Mobilization Advance Bond

Mobilization Advance Bond is required in cases where the obligee (owner) is pre-financing a contract; he may secure the advance’s repayment using a Mobilization Advance Bond.

The amount guaranteed should decrease following the portions of work performed. By this bond, the Insurance Company guaranteed the owner the correct utilization of advance.

In case the contractor fails to fulfill its obligation and commit default, the insurance company will pay the amount to the owner, which is outstanding at that time.

Performance Bond

A performance bond is required of a contract (After accepting Bid and awarding of contract) to guarantee the full and the due performance of the contract according to plan and specifications. In case the contractor fails to perform the contract per the terms and conditions of the contract, the insurance company will be liable to pay the bond amount to the owner on demand.

Supply Bonds

Supply bonds are similar in intent to performance bonds. They are issued for contracts to supply materials, goods, machinery at a specified time and place