Some pain points addressed in surety bonds: Irdai

New Delhi: Irdai chairperson Debasish Panda on Thursday said the insurance regulator has tried to address some of the pain points in relation to surety bonds, and stressed that it may make further changes if needed.

The surety bond insurance is a risk transfer tool for the principal and shields the principal from the losses that may arise in case the contractor fails to perform their contractual obligation.

The product gives the principal a contract of guarantee that contractual terms and other business deals will be concluded in accordance with the mutually agreed terms. "We have tried to address some of the pain points. In case there is need for some tweaking, we will consider.