IFFCO Tokio Surety Bond Insurance: Inclusions
IFFCO Tokio offers protection through various surety bond structures, including:
- Coverage against contractual non-performance by the principal.
- Protection for advance payments made to contractors.
- Financial security for project owners in case contractual obligations are not fulfilled.
- Support for commercial and infrastructure contracts.
- Coverage through multiple bond types based on project requirements.
- Alternative to bank guarantees for eligible contracts.
- Financial indemnification to the beneficiary is subject to policy terms.
IFFCO Tokio Surety Bond Insurance: Available Bond Types
- Advance Payment Bond
- Protects advance payments released to the contractor.
- Performance Bond
- Covers losses arising from failure to perform contractual obligations.
- Bid Bond
- Protects the beneficiary if a bidder withdraws or fails to enter into the contract.
- Retention Money Bond
- Provides security against obligations linked to retained payments.
IFFCO Tokio Surety Bond Insurance: Exclusions
This Surety Bond Insurance will not apply in the following situations:
- The original contract between the Principal and Beneficiary is invalid, cancelled, or terminated before an insured event occurs.
- Losses arising from intentional misconduct, fraud, bribery, collusion, illegal acts, or criminal activities by the Principal or Beneficiary.
- Changes or modifications made to the contract without the Surety's prior written approval.
- Losses arising from war, nuclear risks, pollution, natural calamities, or actions of courts and government authorities, except where specifically covered under the policy.
- Penalties, fines, late payment charges, punitive damages, or other consequential liabilities not covered under the bond.
- Claims arising from obligations, liabilities, or losses that fall outside the scope of the original insured contract.
Note: The above list is indicative. Policyholders should refer to the official policy wording for complete terms, conditions, exclusions, and limitations.
IFFCO Tokio Surety Bond Insurance: Claim Process
- The beneficiary identifies contractor default or breach.
- Bond invocation is made according to contractual provisions.
- Required documents and evidence are submitted.
- IFFCO Tokio evaluates the claim.
- Admissible losses are indemnified as per the bond terms and policy conditions.
IFFCO Tokio Surety Bond Insurance: Documents Required
Documents may vary depending on the bond type and project. Commonly required documents include:
- Contract agreement
- Tender documents
- Project details
- Financial statements
- KYC documents
- Bond invocation notice (for claims)
- Supporting loss documentation
Subject to underwriting and claim requirements.
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It is a financial guarantee solution that protects beneficiaries against losses caused by a contractor's non-performance.
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Yes, it serves as an alternative risk-transfer mechanism for eligible contracts.
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IFFCO Tokio offers Bid Bond, Performance Bond, Advance Payment Bond, and Retention Money Bond.
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The Principal, Beneficiary, and IFFCO Tokio as the Surety.
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