INSURANCE · RISK · ADVISORY

Bid Bond & Surety Bond Insurance.

Protection structured around real-world risk.

IRDAI-compliant insurance surety bonds engineered for contractors, EPC developers, and infrastructure concessionaires—releasing locked bank guarantee cash margins and expanding bidding capacity.

Request a consultation Critical Exposures Explore coverage

Thoughtful advice. Clear options. Support through the policy journey.

Construction contract agreement signing, project tender and financial surety guarantee

GITVISHA · RISK ADVISORY

Risk, understood.Start with what matters

Cover that fitsSubject to policy terms

CRITICAL VULNERABILITIES & EXPOSURES

Real-world risks this policy is engineered to solve.

Commercial and personal risks rarely follow idealized assumptions. These are the critical financial pitfalls, claim traps, and operational vulnerabilities that proper policy structuring actively mitigates.

High-Impact Vulnerability01

The Working Capital Trap & Locked Bank Margins

Commercial banks demanding 10% to 20% cash fixed-deposit margins plus 100% collateral to issue tender or performance bank guarantees.

Impact: Contractor working capital is frozen in non-operational deposits, preventing concurrent bidding on new high-margin infrastructure tenders.

Policy Solution: IRDAI-approved Insurance Surety Bonds replacing bank collateral, releasing liquidity and unlocking multi-project bidding limits.

High-Impact Vulnerability02

Arbitrary & Unfair Bond Invocation Risk

Ambiguous contract disputes or client-side site clearance delays triggering sudden unconditional 'on-demand' guarantee encashment.

Impact: Instant severe liquidity shock, enterprise credit rating downgrade, and potential blacklisting from future tender qualification.

Policy Solution: Surety bond structuring with clear conditional default definitions, mandatory dispute cure periods, and tripartite mediation clauses.

High-Impact Vulnerability03

Obligee Format Rejection at Tender Submission

Tender authority or public sector undertaking rejecting non-standard surety bond wording that deviates from government model tender formats.

Impact: Instant technical bid disqualification after months of costly tender preparation and consultant expenditure.

Policy Solution: Pre-vetted obligee-compliant bond templates aligned with standard Ministry of Finance, NHAI, Indian Railways, and CPWD procurement formats.

UNDERSTAND YOUR OPTIONS

Protection begins with the right questions.

These are discussion points, not a promise that every risk is covered. Final cover depends on policy wording and insurer acceptance.

Bid Bond / Tender Guarantee

Guarantees that the contractor will execute the awarded contract and submit performance security without withdrawing

Performance Bond

Protects the project owner against contractor default or failure to fulfill technical specifications and construction milestones

Advance Payment Bond

Guarantees proper utilization and recovery of mobilization advances disbursed by the project owner

Retention Money & Maintenance Bond

Releases withheld retention payments during the defects liability period (DLP)

WHO IT MAY SUIT

Built around your real-world exposure.

The right structure starts with understanding your assets, operations, people and contractual responsibilities.

Infrastructure contractors and EPC concessionaires executing state & central government tenders

Highway, bridge, railway, and metro construction firms bidding for public works

Power transmission, water distribution, and urban utility project developers

Industrial contractors seeking to release blocked bank guarantee cash margins

BEFORE YOU CHOOSE

Details that make a difference.

Compare more than price. Review limits, deductibles, exclusions and policy conditions.

Discuss your requirement

Contractor technical capability, 3-year audited net worth, current order book, and debt-equity gearing ratios

Project owner (obligee) acceptance format, IRDAI compliance clauses, and conditional vs unconditional call wording

Bond validity duration, milestone inspection timelines, and defined default arbitration mechanisms

GOOD TO KNOW

Questions, answered.

Need more clarity? Send us your requirement and our team can help explore the next step.

Ask our team

How does an Insurance Surety Bond differ from a traditional Bank Guarantee (BG)?

Unlike a Bank Guarantee which typically locks up 10% to 20% cash margin and encumbers bank credit lines, an Insurance Surety Bond is an underwriting-based instrument. It frees up working capital, expands bidding capacity, and complies with Ministry of Finance procurement rules.

Are Gitvisha Surety Bonds accepted by government authorities and PSUs?

Yes. In accordance with IRDAI guidelines and Ministry of Finance General Financial Rules (GFR), insurance surety bonds issued by recognized general insurers are valid substitutes for Bank Guarantees across NHAI, Indian Railways, CPWD, and central PSUs.

What is the difference between a Bid Bond and a Performance Bond?

A Bid Bond guarantees that a winning bidder will accept the contract and submit performance security. A Performance Bond protects the project owner throughout construction against contractor default or failure to complete the project as contracted.

LET’S TALK ABOUT YOUR RISK

Make your next decision with more clarity.

Tell us about your requirement. Your email application will open with the enquiry ready to send.

A conversation focused on your needs

Options subject to underwriting

Clear next steps, without pressure

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