IRDAI relaxesnorms forsurety bonds
17 May 2023 11:15:03
REGULATOR IRDAI onTuesday said it has relaxednorms for‘surety bonds’, a typeof insurance policy protectingparties involved in a transaction or contract from potentialfinancial losses due to a breachof contract or other types ofnon-performance.
The changes are aimedat expanding the suretyinsurance market by increasing the availability of suchproducts.
As per a circular issued bythe Insurance Regulatory andDevelopment Authority ofIndia (Irdai), the solvencyrequirement applicable forsuch products has now beenreduced to control the level of1.5 times from 1.875 times previously prescribed.