Insurance Bonds – A Smarter Alternative to Bank Guarantees
SKR Fincon facilitates the arrangement of Insurance Bonds through reputed insurance companies in India. These instruments provide the same assurance as traditional bank guarantees but without blocking banking limits or cash margins, helping businesses preserve liquidity and enhance credit flexibility.
Why Insurance Bonds
Insurance Bonds are issued by licensed Indian insurers to guarantee performance or financial obligations under a contract. They serve as a secure, compliant, and cost-effective substitute for performance or advance bank guarantees, widely accepted by public and private sector counterparties across infrastructure, manufacturing, and trade.
Our Role
We work closely with multiple Indian insurers to identify the most suitable bond structure and underwriting parameters for each client. SKR Fincon coordinates documentation, due diligence, and liaison with insurers to ensure efficient issuance and full regulatory compliance under the IRDAI framework.Benefits for Businesses
- Frees up existing bank and credit lines
- Reduces margin-money requirements and borrowing costs
- Provides faster turnaround compared with conventional guarantees
- Strengthens liquidity and working-capital efficiency
Industry Applications
Insurance Bonds are increasingly used for project contracts, tenders, EPC agreements, and financial commitments where performance assurance is required. They offer corporates a modern, flexible alternative within India’s regulated insurance landscape.
Result
Performance and payment obligations secured efficiently — preserving liquidity, reducing cost, and enhancing business credibility through Indian insurer-backed assurance.