NEWS
- 28 April | India to Witness Deadliest Event of World History Mega El Nino Click Here →
- 15 April | The 3-Attempt Strategy No One Talks About | How He Scored 420+ in GS Click Here →
- 30 March | The Honest UPSC Talk Nobody Tells You Click Here to see Abhijit Asokan AIR 234 talk →
News: Insurance Regulatory and Development Authority(IRDAI) has formed a panel under G Srinivasan to assess the suitability of the Indian insurance industry or any other sector to offer Surety Bonds for road contracts in the country.
Facts:
- Surety Bond: It is a three-party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond.
- Significance: Surety bonds provide financial guarantee that contracts will be completed according to predefined and mutual terms.When a principal breaks a bond’s terms, the harmed party(obligee) can make a claim on the bond to recover losses.
- Why Surety Bond in the Road Sector? Surety bonds in the road sector guarantees satisfactory completion of a project by a contractor and provide performance security to various government agencies.
