BONDS AND CREDIT INSURANCE

Contractors undertaking the Construction of public works building, roads etc are required to furnish bonds for faithful execution of their obligations. The surety bound to indemnify the employer if the contractor fails or refuse to complete the job in accordance with the contractual obligations. The large or medium size contractors also provide the facility of mobilization advance to the contractors. This advance is paid on the provision of Mobilization Advance Bond. In addition, the contracts are normally awarded against the tenders duly secured with bid bonds so that the contractor does not refuse to commence the work after the award of contract. East West Insurance Co. Ltd. provides several kinds of Bonds to their clients namely, Bid Bond, Advance Payment Bond/Mobilization Bond, Performance Bond, Supply Bond, Fidelity Bond, Maintenance Bond, Custom or Excise Bond.
In the year 2007, premium income under this head was Rs.22.72 million.