CURRENT AFFAIRS

Detailed explanation-1: -Srinivasan, director, National Insurance Academy, to study the suitability of insurers offering surety bonds for contractors. The panel shall submit its report within three months.

Detailed explanation-2: -Headed by G Srinivasan, Director, National Insurance Academy, the group comprises members from public and private insurance companies and Irdai, the sectoral regulator said in a circular.

Detailed explanation-3: -A surety bond is provided by the insurance company on behalf of the contractor to the entity which is awarding the project.

Detailed explanation-4: -The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous regulatory body that protects the interests of the policyholder. They oversee the growth of the insurance sector in India, the requirements that different types of insurance policies project, and help maintain a speedy development.

Detailed explanation-5: -Surety Bond Insurance will act as a security arrangement for infrastructure projects and will insulate the contractor as well as the principal. The product will cater to the requirements of a diversified group of contractors, many of whom are operating in today’s increasingly volatile environment.