<aside> 💡 All your questions about Commercial Micro Surety Bonds answered. Please click the toggle buttons in each section to get more details.

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<aside> <img src="/icons/checkmark_blue.svg" alt="/icons/checkmark_blue.svg" width="40px" /> Overview

• What is a Commercial Micro Surety Bond?
• Is this another Insurance product? How it it different?
• Does this have any regulatory approval?
• Which are some of the insurance companies that issue these bonds? And to whom? </aside>

<aside> <img src="/icons/checkmark_blue.svg" alt="/icons/checkmark_blue.svg" width="40px" /> How Do They Compare with a Bank Guarantee?

• What are the savings in capital cost?
• How do they help unblock monies that can be invested in growth?
• Are they hassle-free compared to bank guarantees?
• Are they a similar guarantee product? </aside>

<aside> <img src="/icons/checkmark_blue.svg" alt="/icons/checkmark_blue.svg" width="40px" /> Key Features of Surety Bonds

• What is the underwriting process like?
• What is the process of issuance?
• What are the guarantees and validity periods?
• Are surety bonds non-cancellable?
• What are the fees associated?
• Is there a no-claim bonus? </aside>

<aside> <img src="/icons/checkmark_blue.svg" alt="/icons/checkmark_blue.svg" width="40px" /> What Happens When a Bond is Invoked?

• What triggers the invocation of a surety bond?
• What is the claims process?
• How does the surety company recover losses?
• What are the legal implications for the principal?
• Can a bond be reinstated after being invoked? </aside>

<aside> <img src="/icons/checkmark_blue.svg" alt="/icons/checkmark_blue.svg" width="40px" /> Who Should Be Looking for a Surety Bond?

• Which types of businesses need surety bonds?
• Do established companies also benefit from surety bonds? </aside>

<aside> <img src="/icons/checkmark_blue.svg" alt="/icons/checkmark_blue.svg" width="40px" /> Important Terms and Conditions

• What is the cost of a surety bond?
• What does a surety bond cover?
• What is the refund policy for surety bonds? </aside>

<aside> <img src="/icons/checkmark_blue.svg" alt="/icons/checkmark_blue.svg" width="40px" /> Why axiTrust?

• Why choose our surety bonds platform?
• How do we simplify the process?
• What is our expertise in the industry?
• What support do we offer to our clients?
• How do we ensure customer satisfaction? </aside>

<aside> <img src="/icons/checkmark_blue.svg" alt="/icons/checkmark_blue.svg" width="40px" /> Key Regulatory Documents related to Surety Bonds

• Department of Expenditure (DoE), Ministry of Finance, GoI OM (amendment to General Financial Rules 2017), expanding the definition of Guarantee to include Sureties. (Feb, 2022)
• IRDAI Guidelines Defining and Permitting the use of Surety Bonds (Jan 2022)
• Latest Surety Guidelines by IRDAI (Jun, 2024), refer Page 26 & 27 in the below attachment.
• Department of Expenditure (DoE), Ministry of Finance, GoI General Financial Rules 2017 (updated Aug 2024), with the added clauses around Bid and Performance Security via Surety Bonds
• Department of Financial Services (DFS), Ministry of Finance, GoI Implementation guidelines for government departments regarding acceptance of surety bonds (Sep, 2024)

Implementation Documents (ministry guidelines) related to Surety Bonds

• Government e Marketplace (GeM) : Revised Terms of the GOI Government e Marketplace (GeM) Portal, allowing accepting Surety Bonds (May, 2024).
• Ministry of Defence: Defence Acquisition Policy 2020 with Amendments issued vide MoD ID No 1(8)/D(Acq)/21 dated 01 Apr 2024.
• Ministry of Road Transport and Highways : Mandate asking all departments to accept Surety Bonds
• IOCL Documents showcasing accepting of SBs
• First Surety Bond Issued by SBI General Insurance to NHAI (Nov, 2023). </aside>

About axiTrust

Founded by a team of serial entrepreneurs and industry experts, and backed by marquee investors, axiTrust is a registered technology and consulting company that provides financial services and products via its technology platform. It is bringing Surety Bonds to MSMEs for the first time India, via its partnership with the insurance ecosystem.

So Sellers can sell more and get paid on time. So Buyers can buy more with confidence. Profitably. Easily. Without Risk.

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