IRDAI vide Circular dated 15-05-2023 has issued Modification of Surety Insurance Guidelines. It is directed that where the solvency margin of an insurer falls below the specified threshold limit at any point of time, the insurer shall stop underwriting new Surety Insurance business until its solvency margin is restored to above the threshold limit.
The limit of guarantee shall not exceed 30 percent of the contract value.
