CURRENT AFFAIRS

2017

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

What type of bonds are being introduced by the Union Minister Nitin Gadkari recently?

A	Masala Bonds
B	Samurai bonds
C	Euroyen bonds
D	Yankee Bonds

Explanation:

Detailed explanation-1: -The Surety Bond Insurance is a risk transfer tool for the Principal and shields the Principal from the losses that may arise in case the contractor fails to perform their contractual obligation.

Detailed explanation-2: -The product will facilitate the growth of upcoming infrastructure projects in the country. Union Minister for Road Transport and Highways Shri Nitin Gadkari launched one of India’s first-ever Surety Bond Insurance product from Bajaj Allianz.

Detailed explanation-3: -Surety bonds are a contract or a three-way agreement that are guarantees of payment, which insurers issue. The surety (insurance companies/banks) provides the financial guarantee to the obligee (government) that the principal (contractor) will fulfil their obligations as per the agreed terms.

Detailed explanation-4: -IRDAI has allowed insurers to issue contract bonds, which provide assurance to the public entity, developers, subcontractors and suppliers that the contractor will fulfil its contractual obligation when undertaking the project.

There is 1 question to complete.