IFFCO-Tokio Launches Surety Bond Insurance

New Delhi: IFFCO-Tokio General Insurance has launched Surety Bond Insurance -- a risk mitigation solution to support infrastructure sector. The Insurance Regulatory and Development Authority of India (IRDAI) had permitted general insurers to issue surety insurance bonds in April 2022.

The bonds are legally enforceable tripartite contracts that seek to provide hedge against risk involved with infrastructure projects, IFFCO-Tokio General Insurance said in a statement.

In the last decade, India initiated 9,242 Public-Private Partnership (PPP) infrastructure projects amounting to Rs 68.13 lakh crore. To make these projects a reality, India needs to widen the contactors’ pool, who face fund issues, especially with regard to limits that are required under India’s bidding and other processes, said IFFCO-Tokio General Insurance MD and CEO Subrata Mondal.