Assignment 29 Indemnity Bond: Principal Obligee
Assignment 29 Indemnity Bond: Principal Obligee
INDEMNITY BOND
An indemnity bond is a type of insurance policy that ensures one party to a contract will
perform as required. Indemnity bonds are used across the business world. Commerce would
not flow if there wasn't some mechanism in place to assure payment if one of the parties to a
contract failed to act.
An indemnity bond is an insurance contract intended to reimburse the holder of the bond for
any loss caused by the named party's conduct. There are usually three parties to an
indemnity bond: the principal (the person who will receive the money in the case of a
breach), the obligor (the person who purchases the indemnity bond as security for
performance) and a third-party guarantor, usually a bank that, for a premium or fee,
assumes the risk to pay the face value of the indemnity bond should the obligor fail to
perform the terms of the contract with the principal.
Indemnity bond defines under section 124 of the Indian Contract Act. A contract by which one
party promises to save the other from loss caused to him by the conduct of the promisor
himself, or by the conduct of any other person, is called a contract of indemnity.
The purpose of Indemnity bond is to guarantee financial reimbursement in case of any harm
caused by illegal actions on the part of bonded party.
Surety guarantees the financial compensation will be covered if the principal fails to abide
by the set agreement and the law. The indemnity bond can indemnify the obligee in case the
principal does not perform their obligations.
When getting indemnity bonds, the principal signs an indemnity agreement with the surety
provider. It states that the full financial responsibility in case of bond claims belongs to
them rather than the surety.
The typical indemnity bonds that a wide range of individuals and businesses have to obtain
are commercial bonds. They are also known as license and permit bonds, as they are a
common requirement when applying for a professional license. Local, city, state and federal
authorities may require license bonds before they allow an entity to operate within a
regulated business field.
INDEMNITY BOND
THIS DEED OF INDEMNITY BOND is made at New Delhi on the seventh day of May
2020 between Mr. Gopal Jha, aged 45 years, residing at 37, Pearl Court Malviya Nagar New
Delhi - 110094 (hereinafter referred to as ‘the Obligor’) of the ONE PART:
AND
The Swing Medicine Solutions (SMS), a Statutory body, having its registered office at, 256
Shastri Building, 2rd Floor, Pandara Road, Mumbai – 220045 (hereinafter referred to as ‘the
Council’) of the OTHER PART:
WHEREAS the Obligor is a Medical Graduate, from AIIMS Delhi which is a recognized
qualification for registration under Sec.18A / 23A of The Maharashtra Medical Practitioners
Act,1961& opted Registration No. 1023431 dated 24th May 2020 from the Council.
AND WHEREAS the said Obligor has applied for Renewal of Registration in with the SWM
vide application date 24th May, 2020 by furnishing all the required details and necessary
documents/ to the aforesaid Council.
AND WHEREAS the Council has agreed to do so, provided the Obligor executes this
Indemnity Deed in favour of the Council, which the Obligor has agreed to do so.
NOW THIS DEED OF INDEMNITY WITNESSETH that Obligor does hereby agree to
indemnify and keep indemnified the Council against any claim/complaint of whatsoever
nature made by other person/authority for during registration & non-renewal periods and any
consequences arising out of any misrepresentation of fact vis-à-vis the name and/or any other
particulars, made in that behalf. The obligor indemnity against any loss, costs, charges and
expenses incurred or suffered by the Council by reason of such claim arising out of the
consideration of Renewal of Registration of Obligor by the Council on the basis of the
information/documents furnished by the Obligor with Application for Renewal of
Registration.
This Indemnity bond is signed on the date and year first mentioned hereinabove.
SIGNED, SEALED AND DELIVERED BY WITHIN THE NAME OBLIGOR
DR. Gopal Jha
WITNESSES :
1. Pragyan Singhvi (signature)