SBI launches General Surety Bond Insurance, this scheme will provide protection against violation of rules

SBI General Insurance, the non-life insurance arm of the country's largest bank State Bank of India (SBI), today announced the launch of the 'General Surety Bond Insurance (Conditional and Unconditional)' insurance product.
The surety bond insurance will act as a security cover for the infrastructure projects and will protect the contractor as well as the principal (contract awarding authority).
SBI General said in a statement that this insurance product is designed to provide protection against breach of terms and conditions by contractors at the bidding stage and performance stage. With this, the owners of the projects will be able to feel safe.
SBI informed that surety insurance products include a wide range of bonds such as bid bonds, advance payment bonds, performance bonds, and retention money bonds. While launching this insurance product, SBI said that this product caters to the needs of a diverse set of contractors, many of whom are operating in today's increasingly volatile environment.
SBI said that there are two variants of this insurance bond, conditional and unconditional. In a conditional bond, a specified amount is paid to the beneficiary upon claim when specific conditions are met, while an unconditional bond allows the beneficiary to claim the money without any conditions.
In a conditional bond, a specified amount is paid to the beneficiary upon claim when specific conditions are met, while an unconditional bond allows the beneficiary to claim the money without any conditions. Surety insurance provides an assurance to the project owner in the form of a surety bond that the contractor will complete the project as per the agreed terms and conditions.