WhatsApp: 9971997297Quotes from Multiple Insurers
We compare rates from all IRDAI-approved surety insurers so you get the best premium, always.
IRDAI-Regulated Insurance Surety Bonds
Fast, Reliable & Accepted for EMD/PBG
Pay EMD & Performance Security Without Blocking a Single Rupee
Replace bank guarantees with insurance surety bonds for bid security and performance guarantees. Your working capital and bank limits stay untouched — Tenderbook gets you quoted, underwritten and bonded, end to end.
- Zero BG Limit Impact
- Accepted in Government Tenders — GFR, GeM, NHAI & More
- Quick Online Quote
CASH TIED UP IN YEAR ONE
EMD on a ₹5 crore tender
₹55 L
Bank Guarantee
₹4 L
₹51 L freed up
Insurance Surety Bond
Commission / Premium paid
Cash margin blocked
₹51 L
stays in your business, not the bank
✓ No cash margin✓ Unsecured facility✓ Bank limits preserved
Indicative, assumes BBB/BBB+ investment-grade rating. Margin money is blocked, not spent — but unavailable to your business for the full tenor. Final pricing subject to insurer underwriting.
₹10,000 Cr+
Surety bonds issued for NHAI contracts alone
3,300+
Bonds issued across India & growing
0.8–1.2%
Typical premium vs 1.0–1.5% BG commission
100%
Of your bank limits & margins stay free
What a Surety Bond Actually Saves You
Same tender, same security cover — two different instruments. Switch between a ₹5 crore EMD and a ₹25 crore performance security to see the like-for-like difference.
Bid security on a ₹5 crore tender
Investment-grade contractor, indicative rates
EMD — Bank Guarantee
Bank instrument · ₹5 Crores
Bid Bond — Surety Bond
Insurance instrument · ₹5 Crores
RECOMMENDED
Pricing
Bank Guarantee
BG Commission @ 1.0% p.a.
Surety Bond
Premium @ 0.8%
One-time / annual as applicable
Annual Cost
Bank Guarantee
₹5.00 Lakhs
Surety Bond
₹4.00 Lakhs
₹1.00 Lakh cheaper
Cash Margin Requirement
Bank Guarantee
10% Cash Margin
₹50 Lakhs blocked
Surety Bond
No Cash Margin
Facility Type
Bank Guarantee
Secured Facility
Surety Bond
Unsecured Facility
Frees Your Working Capital
Bank Guarantee
₹50 Lakhs blocked with the bank
Surety Bond
No working capital blocked
Increases Bidding Capacity
Bank Guarantee
Limited by available BG limits
Surety Bond
Increases capacity by preserving bank limits
₹1.00 L
Lower annual cost
₹50 L
Working capital freed
₹0
Cash margin required
| COMPARISON PARAMETER | EMD — Bank GuaranteeBank instrument · ₹5 Crores | Bid Bond — Surety BondInsurance instrument · ₹5 CroresRECOMMENDED |
|---|---|---|
Pricing | BG Commission @ 1.0% p.a. | Premium @ 0.8% One-time / annual as applicable |
Annual Cost | ₹5.00 Lakhs | ₹4.00 Lakhs ₹1.00 Lakh cheaper |
Cash Margin Requirement | 10% Cash Margin ₹50 Lakhs blocked | No Cash Margin |
Facility Type | Secured Facility | Unsecured Facility |
Frees Your Working Capital | ₹50 Lakhs blocked with the bank | No working capital blocked |
Increases Bidding Capacity | Limited by available BG limits | Increases capacity by preserving bank limits |
₹1.00 L
Lower annual cost
₹50 L
Working capital freed
₹0
Cash margin required
ELIGIBILITY & UNDERWRITING CONDITIONS
The comparison above is indicative and assumes:
BBB Stable / BBB+
Investment-grade credit rating
Insurer underwriting
Issuance subject to the insurer's financial assessment
Financial strength
Assessment based on the financial standing of the company
Order book review
Evaluation of ongoing projects and existing commitments
Project risk profile
Details and risk profile of the project the bond is required for
Final pricing, capacity, and terms remain subject to underwriting approval by the surety insurer.
Why Tenderbook
India’s Smartest Way to Handle Surety Bonds
Tenderbook helps you unlock surety bonds without blocking your capital or credit. No workarounds — just a compliant, affordable, digital-first solution for every tender requirement.
Get QuoteTender-Ready Bond Formats
Bonds formatted exactly as required by central & state government tender authorities.
Fast, Digital Process
From application to bond issuance in 48–72 hours — no branch visits, no paperwork delays.
End-to-End Expert Support
Dedicated relationship managers guide you from eligibility check to bond delivery.
The Basics
What is an Insurance Surety Bond?
A three-party contract where an IRDAI-licensed insurer guarantees your performance obligations to a tender authority — so you pay a small premium instead of locking capital.
THE PRINCIPAL
Contractor / Bidder
You apply for the surety bond, pay a small premium, and remain free to use your working capital.
THE SURETY
IRDAI-Licensed Insurer
IRDAI-approved insurer issues the bond — guaranteeing to the authority that you will fulfil obligations.
THE OBLIGEE
Tender Authority
Government body / project owner who accepts the surety bond in place of BG or cash EMD.
The Benefits
Your 4 Key Advantages
Zero Capital Blocked
Unlike bank guarantees, surety bonds don't lock your working capital or cash. Your funds stay free for operations and growth.
Bank Limits Stay Free
Surety bonds don't use your CC or OD limits — keeping your banking lines available for business needs.
Backed by Government Policy
Recognised under the IRDAI Surety Insurance Regulations, mandated for EMD & performance security by Govt. orders.
Underwritten on Merit, Not Collateral
Approved based on business health and track record — not fixed deposits, not property mortgages.
Cover Every Tender Stage
Surety Bonds for Every Tender Requirement
Whether at bid or post-award, we have a bond type designed for exactly that stage.
Bid Bond / EMD Bond
Most PopularReplaces the Earnest Money Deposit required during tender submission. Keep your capital free while bidding.
Performance Bond (FBG Replacement)
Guarantees contract completion — issued in place of the FBG / security deposit after winning the tender.
Advance Payment Bond
Secures the advance paid by the employer to the contractor, as required under most government contracts.
Retention Money Bond
Fast IssuanceReleases retention money held back by the employer, improving your cash flow during project execution.
How They Differ
Surety Bond vs Bank Guarantee
What it is
Insurance Surety Bond
Insurance contract from an IRDAI-licensed general insurerBank Guarantee
Credit instrument from your bankCollateral
Insurance Surety Bond
No hard collateral — underwritten on financials & track recordBank Guarantee
Often required — property or securities pledgedImpact on bank limits
Insurance Surety Bond
Zero — sits outside your banking linesBank Guarantee
Consumes non-fund limits, shrinking capacity for the next bidLegal standing in govt tenders
Insurance Surety Bond
Equal to a BG under the General Financial Rules for bid & performance securityBank Guarantee
Traditional default instrumentReady to Bid?
Your Simple 3-Step to a Surety Bond
From application to issuance — typically within 48–72 hours.
1
Share Tender & Company Details
Tell us the tender, bond type and amount. Share basic KYC, 2–3 years of financials and your work-on-hand summary — once.
2
We Get You Underwritten & Quoted
We connect you with IRDAI-licensed insurers, negotiate the premium, and ensure the correct bond format.
3
Bond Issued — Bid Submitted
Pay the premium, receive your bond, and submit it as EMD or performance security. We track renewals
Who Can Apply
Eligibility & What Insurers Look At
Your Eligibility
- Registered Indian company or firm
- Minimum 2–3 years of operation
- No major outstanding litigation
- Basic financial documentation ready
What Insurers Check
- Net worth & balance sheet health
- Existing order book & project track record
- Industry experience in tendering
- No adverse credit history
Got Questions?
We've Got Answers
Everything you need to know before getting your surety bond.
Yes, for government procurement. The Ministry of Finance amended the General Financial Rules in 2022 to make insurance surety bonds acceptable as bid security and performance security on par with bank guarantees. They are regulated by IRDAI, accepted on GeM, and used at scale by NHAI — over ₹10,000 crore of bonds issued for NHAI contracts alone. Individual tender documents govern the final word, so always check the security clause — we do that check for every client.
Start Your Application
Get Your Surety Bond Quote
Fill in the details and our team will reach out within 2 business hours with a competitive premium quote — no commitment required.
- +91 99719 97297
- anubhav.sharma@tenderbook.in
- WhatsApp: 99719 97297
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