Perspective on Year end 2021 By Mr. Vikash Khandelwal, Eqaro Guarantees
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Below is perspective on Year end 2021 By Mr. Vikash Khandelwal, CEO, Eqaro Guarantees
“2021 saw early signs of acceptance for Surety bonds in India. Sureties have witnessed increasing levels of adoption across industries which include automobile companies, NBFCs, equipment manufacturers, commodity companies, etc. Rental Guarantees was also launched for the very first time this year. The landlords welcomed the idea of letting out their property to credit assessed and verified tenants. Amidst the growing clamour for the introduction of Surety bonds for infra projects, the year also saw the insurance regulator IRDA releasing draft guidelines to regulate the Surety business. We believe that reforms measures like the new procurement guidelines and the Model Tenancy Act will further enhance the adoption of sureties.
2022 could well be the landmark year for sureties. We are hopeful of IRDA releasing the final norms that will create a new category of specialist Surety insurance companies. It will also provide the construction and the infrastructure industry with a better alternative to bank guarantees and help with the efficient management of working capital.”
Above views are of the author and not of the website kindly read disclaimer
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