IRDAI SETS UP GROUP TO FIND SPACE FOR SELLING SURETY BONDS

CHENNAI: The Insurance Regulatory and Development Authority of India (IRDAI) has set up a nine member working committee to look at the possibility of Indian non-life insurers offering Surety Bond to contractors. The IRDAI has set up the committee after the Ministry of Road Transport and Highways requested it to examine the possibility of offering Surety Bond for contractors. According to IRDAI the Ministry of Road Transport and Highways had written to it pointing out the Covid-19 pandemic and its impact on the economy, liquidity and cash flow issues faced by the Indian banking sector.