Watch the whole application on the real GeM portal, screen by screen, from choosing the Insurance Surety Bond on your bid to the bond being issued in your name.

  1. 1Choose and applyPick the Insurance Surety Bond as your EMD on your GeM bid. GeM checks your profile and rating, and may ask you to validate your GST or PAN.
  2. 2Get a quote and payInsurers send their quotes. Choose the one you want and pay online.
  3. 3e-Sign and receiveSign the documents, confirm your details, and your bond is issued.
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What does it cost against a bank guarantee?

Enter your bid security amount to see exactly what a bank guarantee costs next to an Insurance Surety Bond.

We have used industry-standard estimates. You can adjust the commission to match the exact quotes from your bank or insurer.

The GeM journey presentation

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Benefits of an Insurance Surety Bond

An Insurance Surety Bond is a collateral-free way to provide the Earnest Money Deposit (EMD) your GeM tender asks for. You submit it in place of cash or a bank guarantee, so you can take part in tenders without locking up capital. No collateral, no hefty fixed deposit, no blocked banking limit.

    Insurance Surety Bonds on GeM, explained

    Everything you need to know about applying for an Insurance Surety Bond on GeM.

      GeM Resources

      The government notifications and rules that govern how an Insurance Surety Bond is used as bid security, on GeM and beyond. Straight from the source, so you can check anything on this page against it.

      1. PDFRevised terms of the GeM portal, accepting Insurance Surety Bonds on tendersGovernment e-Marketplace (GeM) · May 2024Download PDF
      2. PDFGeneral Financial Rules 2017, as updated to 31 July 2024, carrying bid security and performance security by Insurance Surety BondDepartment of Expenditure, Ministry of Finance · August 2024Download PDF
      3. PDFOffice Memorandum on the acceptance of Insurance Surety Bonds by government departmentsDepartment of Financial Services, Ministry of Finance · September 2024Download PDF
      4. PDFMaster Circular on General Insurance Business, which sets out how Insurance Surety Bonds are writtenInsurance Regulatory and Development Authority of India (IRDAI) · June 2024Download PDF
      5. PDFOffice Memorandum that first brought Insurance Surety Bonds into the General Financial RulesDepartment of Expenditure, Ministry of Finance · February 2022Download PDF
      6. PDFRailway Board guidelines for accepting Insurance Surety Bonds on Indian Railways tendersMinistry of Railways, Railway Board · January 2025Download PDF
      7. PDFAndhra Pradesh Financial Code amended to include the Insurance Surety Bond as a security instrumentGovernment of Andhra Pradesh, Finance Department · 2024Download PDF
      8. PDFPress release on the first Insurance Surety Bond accepted as bid security, by NHAIPress Information Bureau, Ministry of Road Transport and Highways · November 2023Download PDF

      Need help? Want to know more?

      Talk to us and we will guide you through every step of your application on GeM.

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      GeM Helpdesk

      helpdesk-gem@gov.in  ·  1800-419-3436 / 1800-102-3436
      9:00 am to 10:00 pm, Mon to Sat.

      Watch how to apply on GeM
      Let's calculate your savings

      Compare a bank guarantee to an Insurance Surety Bond on your own numbers.

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      Need help? Want to know more?

      Talk to us and we will guide you through every step of your application on GeM.

      Ask us how to apply on GeM