Bond Insurance

This policy guarantees that a particular debt issue will be paid if the debt issuer experiences financial difficulties (Guarantees the bondholder of payment in the event bond issuer’s default). Our guarantee cover provides coverage for:

• Bid Bond: covers the bidden when he/she withdraws its bid during the period of the bid validity, he/she fails or refuses to sign the contract, fails or refuses to furnish the performance security, if required, in accordance with the Instructions to Bidders, he/she refuses to accept the correction of errors in its Bid price .
• Performance Bond: issued to guarantee the beneficiary that a contractor will perform the work as agreed in the contract and provides financial compensation if the contractor fails to meet their obligations.
• Advance Payment Bond: issued to guarantee satisfactory use of the amount of money advanced to the contractor by the owner of the project.
• Temporary Importation Bond: guarantee the payment of import duties and taxes that may be charged on the imported goods, if the goods are sold before being cleared for home use, or if the foresaid goods are not re-exported within the period authorized by the commissioner.
• Bonded Warehouse: this type of bond guarantees that Customs duty will be paid on imported goods. They are normally used for storage of goods without payment of duty in a bonded warehouse under customs control. As and when the goods are removed duty is paid. If for any reasons goods are removed without payment of duty, and the customs department fails to recover the same from the insured, the bond amount may be called up for payment.
• Regional customs transit guarantee (RCTG): this guarantee covers custom administration authorities of COMESA countries against loss of custom duties and taxes on good in transit in case the said good don’t reach the country of destination. In this case the insurer has to pay all duties claimed per each country the goods passed by.