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  • Assignment 29 Indemnity Bond: Principal Obligee

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    Aksa Rasool
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    An indemnity bond is a type of insurance contract with three parties: a principal, obligor, and guarantor. The obligor purchases the bond from the guarantor to ensure the principal fulfills their contractual obligations. If the principal fails to perform, the guarantor reimburses losses to the obligor. The document provides an example indemnity bond contract between Dr. Gopal Jha as the obligor and the Swing Medicine Solutions council as the principal. Dr. Jha agrees to indemnify the council for any claims arising from misrepresentations in renewing his medical license registration. The bond is signed by Dr. Jha and witnessed by two others to take legal effect

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    An indemnity bond is a type of insurance contract with three parties: a principal, obligor, and guarantor. The obligor purchases the bond from the guarantor to ensure the principal fulfills their contractual obligations. If the principal fails to perform, the guarantor reimburses losses to the obligor. The document provides an example indemnity bond contract between Dr. Gopal Jha as the obligor and the Swing Medicine Solutions council as the principal. Dr. Jha agrees to indemnify the council for any claims arising from misrepresentations in renewing his medical license registration. The bond is signed by Dr. Jha and witnessed by two others to take legal effect

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    61 views4 pages

    Assignment 29 Indemnity Bond: Principal Obligee

    Uploaded by

    Aksa Rasool
    An indemnity bond is a type of insurance contract with three parties: a principal, obligor, and guarantor. The obligor purchases the bond from the guarantor to ensure the principal fulfills their contractual obligations. If the principal fails to perform, the guarantor reimburses losses to the obligor. The document provides an example indemnity bond contract between Dr. Gopal Jha as the obligor and the Swing Medicine Solutions council as the principal. Dr. Jha agrees to indemnify the council for any claims arising from misrepresentations in renewing his medical license registration. The bond is signed by Dr. Jha and witnessed by two others to take legal effect

    Copyright:

    © All Rights Reserved
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    of 4

    ASSIGNMENT 29

    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.

    The bond represents a contract between Principal

    is legally required to obtain a bond. Obligee is the

    party that imposes the bonding.

    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

    IN THE PRESENCE OF Arkaprava Dass (signature)

    WITNESSES :
    1. Pragyan Singhvi (signature)

    2. Sunita Mehra (signature)

    Identified & explained by :- Advocate


    Name: Vara Rao
    Address : E-23 CR Park Delhi-110019 Registration
    no. 1038558739
    Phone no. +91-9374658367

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