IFFCO-Tokio General Insurance has launched its surety bonds business to support India’s infrastructure growth. These bonds, legally enforceable contracts, act as a risk-mitigation tool for projects by replacing traditional bank guarantees.
With few insurers currently offering this product, IFFCO-Tokio aims to broaden contractor access and strengthen trust among stakeholders, especially benefiting small and medium-sized firms.
The construction sector has already issued Rs 1.7 trillion in bank guarantees, projected to rise to Rs 3 trillion by 2030. While adoption remains slow due to regulatory and operational hurdles, industry efforts continue to address these and expand the market.