IRDAI (Surety Insurance Contracts) Guidelines 2022

Introduction

On 8 September 2021, the IRDAI had issued an "Exposure Draft on IRDAI (Surety Insurance Contracts) Guidelines 2021" (Draft Guidelines) with the objective of promoting and regulating surety insurance business in India, and invited comments from all stakeholders. Our views on the norms proposed under the Draft Guidelines may be viewed here. Pursuant to the comments received, the IRDAI notified "IRDAI (Surety Insurance Contracts) Guidelines 2022" on 3 January 2022 (Surety Insurance Guidelines), which shall come into force from 1 April 2022.

Surety Insurance Guidelines

A surety insurance contract is a contract of guarantee under §126 of the Indian Contract Act 1872. It is a contract to perform the promise, or discharge the liability of a third person in case of his default. The person who gives the guarantee is called the "surety"; the person in respect of whose default the guarantee is given is called the "principal debtor", and the person to whom