NeSL in talks with insurers to launch surety bonds in digital format

Although the volumes for surety bonds continues to be low, issuance in a non-paper manner will ease a lot of administrative work for the insurers and could also help in increasing volumes

National e-Governance Services Ltd (NeSL) is in talks with insurance companies to issue surety bonds in digital format, according to industry insiders.

 

Although the volumes for surety bonds continue to be low, non-paper issues will ease administrative work for insurers and could also help in increasing volumes, experts said. 

 

Surety bonds are legally enforceable tripartite contracts that provide a hedge against risks associated with infrastructure projects.

 

The insurance regulator in April 2022 had permitted general insurers to issue surety insurance bonds.

 

NeSL facilitates the issuance, management, and verification of electronic bank guarantees (e-BGs) and is in discussion to add surety