Insurance surety bonds data gaps under regulatory lens

New Delhi: Financial sector regulators, including the and the Insurance Regulatory and Development Authority of India (), are expected to address gaps in the reporting of and as lenders flag the lack of such instruments from credit information systems as a major blind spot, said people aware of the discussions.

#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;}
.onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px}
#sr_widget.onDemand .sr_desc{margin:0 auto 0;}
#sr_widget.onDemand .live_stock p a{color: #fff;;}
#sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;}
#sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important}
#sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%}
#sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
A senior government official told ET that the issue may be deliberated at the level of the (FSDC), an apex inter-regulatory body chaired by the finance minister, which coordinates among key financial sector regulators to safeguard systemic stability and address emerging risks. Key members of the FSDC include the Securities and Exchange Board of India and Pension Fund Regulatory and Development Authority.
.bgBig{border-bottom:0;padding:20px 0 0 0;}
.bgBig a.bglink{font-family:Faustina;font-size:20px;font-style:normal;font-weight:600;line-height:normal;border-bottom:0;}


Insurance surety bonds are instruments in which insurers act as sureties, guaranteeing that a contractor will fulfil its obligations under the agreed terms.

Insurance Surety Bonds Data Gaps in Focus

“It has been flagged that insurance surety bonds are currently not being captured in the credit information reports of (CICs), resulting in gaps in lenders’ assessment of borrower exposures,” the official said, adding some lenders have also flagged the growing prevalence of private credit, including exposures through alternative investment funds (AIFs), which aren’t currently reported to the Central Repository of Information on Large Credits (CRILC), limiting system wide visibility.

Under existing regulations, IRDAI (Surety Insurance Contract) Guidelines 2022, promote and regulate development of surety insurance business in India.



A bank executive said insurance surety bonds should be factored into working capital assessments to better reflect contingent liabilities arising from such instruments. “We have been pressing for disclosure of such instruments in credit appraisal processes as their absence from reporting frameworks could lead to an incomplete view of leverage.”
a:hover{text-decoration:none;}
.liveEventMain_widget{margin-top:15px;padding-top:24px;border-top:2px solid #000;position:relative;font-family:Montserrat;}
.liveEvent_slider{position:relative;overflow:hidden;}
.liveEvent_slider ul{white-space:nowrap;list-style:none;margin-top:12px;}
.liveEvent_slider ul.sliderContainer{margin-bottom:30px;}
.liveEvent_slider ul li{white-space:normal;width:282px;vertical-align:top;display:inline-block;margin-right:12px;border-radius:12px;box-shadow: 0px 4px 12px 0px #2407461F;background-color:#fff;overflow: hidden;}
.images_wrap{position:relative;}
.images_wrap .cover_img{object-fit:cover;object-position:center;border-top-left-radius:4px;border-top-right-radius:4px;}
.images_wrap .author_img{position:absolute;left:10px;top:13px;border-radius:10px;}
.images_wrap::before{background-image: linear-gradient(180deg, rgba(11, 11, 46, 0) 20.31%, rgba(11, 11, 46, .6) 61.46%, #0b0b2e);content: “”;height: 100%;left: 0;position: absolute;right: 0;width: 100%;}
.liveEventMain_widget .details{padding:12px;}
.liveEventMain_widget .category{font-size:12px;line-height:14px;font-weight:700;color:#6a11b0;margin-bottom:8px;}
.liveEventMain_widget .course_name{font-size:16px;line-height:20px;font-family:Faustina;-webkit-line-clamp:2;overflow:hidden;height:40px;display:-webkit-box;-webkit-box-orient:vertical;font-weight:600;color:#000;}
.liveEventMain_widget .details .author_name{font-size:13px;line-height:16px;color:#333;font-weight:400;margin-top:4px;-webkit-line-clamp:2;overflow:hidden;height:32px;display:-webkit-box;-webkit-box-orient:vertical;}
.liveEventMain_widget .view{border: 1.5px solid #D51131; display: block; padding: 8px 0; text-align: center; border-radius: 4px; font-size: 14px; line-height: 16px; color: #D51131; margin-top: 12px; width: 100%; font-family: Montserrat; font-weight: 600; cursor: pointer;}
.liveEventMain_widget .view span{display: inline-block; width: 6px; height: 6px; border-top: 1.5px solid #ed193b; border-left: 1.5px solid #ed193b; transform: rotate(90deg); position: relative; left: 5px; top: -2px;}
.liveEventMain_widget .view span::after{content: ”; display: inline-block; width: 11px; border-top: 1.5px solid #ed193b; transform: rotate(45deg); position: absolute; top: 3px; left: -2px;}
.liveEventMain_widget .arrow_btn{width: 26px; height: 25px; position: absolute; z-index: 11; background-size: 312px; cursor: pointer;}
.liveEventMain_widget .nextprev-btn{display:inline-block;width: 100%; position: absolute; top: 59%;}
.liveEventMain_widget .prev-btn{background-position: -212px -2px;left: -12px;}
.liveEventMain_widget .next-btn{background-position: -241px -2px; right: -3px;left:unset;}
.liveEventMain_widget .arrow_btn.disable{opacity:0.5;}
.liveEventMain_widget .ts-dots{display:inline-block;position:absolute;top:34px;right:10px;}
.liveEventMain_widget .ts-dots ul{display:inline-block;}
.liveEventMain_widget .ts-dots li{width:7px;height:7px;border-radius:50%;background-color:#cdcdcd;margin:0 2px;display:inline-block;}
.liveEventMain_widget .ts-dots li span{display:none;}
.liveEventMain_widget .ts-dots li.active{background-color:#ed193b;}
.liveEventMain_widget .topContain {
display: flex;
align-items: center;
gap: 6px;
}
.liveEventMain_widget .topContain .imgBox {
max-width: 40px;
}
.liveEventMain_widget .topContain .logoTitle {
font-family: “Montserrat”, “Verdana”;
font-weight: 700;
font-size: 20px;
line-height: 100%;
}
.liveEventMain_widget .topContain .logoSubTitle{
position: relative;
font-size: 18px;
font-weight: 500;
line-height: 1.2;
color: #747474;
margin-left: 24px;
}
.liveEventMain_widget .topContain .logoSubTitle:before{
content:”;
position: absolute;
left: -13px;
top: 0;
width: 1px;
height: 100%;
background-color: #838383;
}
.liveEventMain_widget .liveEvent_slider .liveEventCardContainer{
}
.liveEventMain_widget .liveEvent_slider .liveEventCardContainer .liveEventCard{
display: flex;
}
.liveEventMain_widget .liveEvent_slider .liveEventCardContainer .liveEventCoverImg{
}

ET logo

Live Events

      Insurance surety bonds issued for alone have crossed ₹10,000 crore, with around ₹10,369 crore of issuances reported for NHAI contracts as of July 2025. As per industry estimates, volumes will have reached around ₹60,000 crore by 2025-end.

      Information utility National E-Governance Services Ltd (NeSL) is also working on electronic insurance surety bonds (e-ISB), pitching it as an alternative to all forms of performance bid guarantees.
      #sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;}
      .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px}
      #sr_widget.onDemand .sr_desc{margin:0 auto 0;}
      #sr_widget.onDemand .live_stock p a{color: #fff;;}
      #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;}
      #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important}
      #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%}
      #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}

      .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;}
      .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:’Montserrat’;}
      .Pbannertext img{height:20px;margin:0 6px}
      .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:’Montserrat’;}
      .Pbannerbutton img{height:20px;margin-right:6px}
      .Pbannerbutton a:hover{background-color:#f7f7f7}

      Add ET Logo as a Reliable and Trusted News Source


      (You can now subscribe to our )

      (You can now subscribe to our )

      Leave a Reply

      Your email address will not be published. Required fields are marked *

      6 + 1 =