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Insurance and Guarantees

Plain-language definitions of every Insurance and Guarantees term that shows up in government tender work.


Insurance and Guarantees

Bank Guarantee vs Insurance Guarantee

A bank guarantee is issued by a scheduled bank promising unconditional payment, while an insurance guarantee is issued by an insurer, with government tenders specifying which instrument is acceptable for EMD and PBG.

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Insurance and Guarantees

Composite Insurance for Contractors

Composite Insurance for Contractors is a bundled insurance package covering all statutory and contractual insurance requirements under a single policy, simplifying compliance for government project contractors.

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Insurance & GuaranteesCAR

Contractor All Risk (CAR) Insurance

A comprehensive insurance policy covering physical loss or damage to a construction project and third-party liability, typically mandated in government works contracts.

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Insurance and Guarantees

Fidelity Guarantee

A Fidelity Guarantee is an insurance policy that compensates an employer for financial loss caused by the dishonest or fraudulent acts of trusted employees handling money or property.

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Insurance and Guarantees

Marine Cargo Insurance

Marine Cargo Insurance covers loss or damage to goods during transit by sea, road, rail, or air from the supplier's premises to the delivery point on a government contract.

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Insurance and Guarantees

Professional Indemnity Insurance

Professional Indemnity Insurance covers a consultant or professional firm's legal liability for financial loss suffered by a government client due to negligent professional advice, design error, or omission.

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Insurance and Guarantees

Surety Bond in Indian Procurement

A surety bond in Indian procurement is an insurance-backed financial guarantee issued by a general insurer to assure a government buyer that a contractor will fulfil its contractual obligations.

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Insurance and Guarantees

Third Party Liability Insurance

Third Party Liability Insurance covers a contractor's legal liability for accidental bodily injury or property damage caused to members of the public or neighbouring properties during project execution.

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Insurance and Guarantees

Transit Insurance

Transit insurance covers loss or damage to goods while being transported from a supplier's premises to the delivery point, commonly required in government supply and works contracts.

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Insurance and Guarantees

Workmen Compensation Insurance

Workmen Compensation Insurance covers the contractor's statutory liability to pay compensation to workers who suffer injury, disability, or death while employed on a government project site.

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