A contractual risk‑mitigation solution that provides financial guarantees for performance of contractual obligations.
Financial guarantee for contractual performanceAlternative to traditional bank guarantees
Kshema Surety Bond Insurance is structured to safeguard business & project owners against losses arising from a contractor’s failure to comply with agreed contractual obligations, whether at the bidding phase or during project execution.
Kshema offers 4 types of Bonds:
Benefits of Kshema’s Surety Bond:
Three key entities that form the foundation of every surety bond and insurance arrangement
Insured
The entity responsible for performing contractual obligations under the project or agreement.
Obligee / Beneficiary
The party (government body, PSU, entity) in whose favour the surety bond insurance is issued.
Kshema General Insurance Limited
The insurer providing a financial guarantee and compensating the Creditor in case of default by the Principal Debtor, as per policy terms.
A guarantee the bidder will honour the bid and execute the contract at the quoted price, if selected.
A guarantee the advance made to a contractor will be used for the project and recovered if contractual obligations are not met.
A guarantee the contractor will complete the project in accordance with the contractual terms and specifications.
A guarantee that replaces retained cash, assuring the project owner that contractual obligations will be fulfilled during the defect-liability period.
Based on the contractor's financial strength, experience & past performance
Contractor (Principal Debtor) signs a Deed of Indemnity with Kshema.
Kshema General Insurance issues the Surety Bond to the Creditor.
If the contractor defaults, the Creditor makes a written demand to Kshema, providing required documents.
Kshema evaluates the claim and gives the contractor a chance to rectify or pay (as per policy timelines).
If the contractor still fails, Kshema pays the Creditor up to the Bond Value.
The contractor is legally required to reimburse Kshema afterwards.
The Creditor must return the original Bond after settlement.
Comprehensive protection for your property and assets against fire and allied perils.
Reliable surety bond insurance solutions designed to strengthen contractual assurance and financial security
Provides a financial guarantee to protect the Beneficiary against default or non‑performance of contractual obligations
Reduces financial risk by offering assurance under surety bond and insurance arrangements without blocking working capital
Strengthens trust by demonstrating financial strength and compliance when bidding for projects or contracts
Surety Insurance provides assurance to the project owner through a bond that the contractor will complete the project in accordance with agreed terms and conditions.
Kshema Surety Insurance acts as a risk transfer solution, protecting the project owner from potential losses if the contractor fails to meet contractual obligations.
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