About This Policy
Advance Payment Bonds assure the owner that the contractor will utilize the advance strictly for project purposes. Misuse or default leads to recovery through the bond.
What's Covered
If the contractor misuses or fails to repay the advance as per contract terms, the insurer reimburses the project owner. It ensures financial discipline and proper mobilization of resources at project start.
Who Should Buy?
Contractors availing upfront mobilization funds, EPCs in road, rail, power, or irrigation sectors, Companies working on World Bank or ADB-funded projects.