IRDAI and General Insurance Council Organize Surety Conclave

Mumbai, Aug 23: The Insurance Regulatory and Development Authority of India (IRDAI) and the General Insurance Council (GIC) today organized a significant Surety Conclave in Mumbai. The event, led by IRDAI Chairman Debasish Panda and Tapan Singhel, Chairman of the General Insurance Council & MD & CEO of Bajaj Allianz General Insurance, brought together key stakeholders from the insurance industry to discuss the progress and challenges faced by the surety bond market in India. The conclave was attended by representatives from general insurers, reinsurers, banks, NHAI, WDRA, ONGC, HPCL, and the Electric Power Transmission Association. Notable attendees also included Dinesh Khara, Chairman of State Bank of India, Sunil Mehta, CEO of the Indian Banks Association, and T K Manoj Kumar, Chairman of the WDRA.

To address these challenges and drive the growth of the surety bond market, a task force has been formed comprising representatives from insurers, banks, and reinsurers. The task force will focus on developing strategies for risk sharing, enhancing collaboration between banks and insurers, and fostering a conducive environment for the growth of surety bond insurance. Speaking at the conclave, Debasish Panda, IRDAI Chairman: "Surety bonds play a crucial role in supporting India's infrastructure development. By addressing the challenges and fostering collaboration, we can unlock the full pTapan Singhel, Chairman of General Insurance Council & MD & CEO of Bajaj Allianz General Insurance echoed these sentiments, "The collaboration between bankers and insurers, coupled with seamless data sharing, will be key to taking Surety Bonds to the next level. The formation of a task force is a critical step forward in ensuring that Surety Bonds become a cornerstone of India’s infrastructure growth story."

The discussions underscored the need for regulatory support and industry-wide cooperation to address issues such as the right of recovery by the Ministry of Corporate Affairs, the status of secured creditors, and the need for faster court settlements. The Surety Conclave concluded with a strong commitment from all stakeholders to work towards resolving the challenges and leveraging Surety Bonds to boost India’s infrastructure development. The formation of the task force marks a significant step towards achieving these goals, potential of this valuable financial instrument. The discussions have paved the way for meaningful collaboration among stakeholders, which will be instrumental in overcoming these hurdles."