WITH THE AIM OF DEVELOPING SURETY SYSTEM...
* This web site has been created by Arti Reinsurance Captive team with 30 years unique experience in this field, with the aim of contributing to the development of the surety system by sharing information, announcing current problems and technical solutions on surety and financial insurances. ( www.artire.com.tr )
* As a member or frequently visiting the Surety Workshop website you can recognize surety products, understand surety transactions and usage possibilities. You can send any questions and comments on the subject. Your questions will be answered to your personal mail address in a shortest time.
THE NEED FOR GUARANTEE AT HOME AND ABROAD
In Turkey and in the world, depending on growing conditions, to find a long-term letter of guarantee from banks or to impose it abroad is becoming increasingly difficult.
This limits the capacity of exporters and contractors engaged in undertaking business abroad.
However, the one-to-one equivalent of the various guarantees used by the exporters and contractors from the banks in the transaction processes exists in the surety market offered by the insurers.
In Turkey, usually taken from banks guarantees such as Advance Letter, Performance Guarantee, Goods-Material Payment Guarantee, Import L / C, Customs Guarantee, Guarantee Period Guarantee can also be obtained from the surety markets.
As in the countries that actively use surety transactions, exporters and contractors who obtain guarantee needs from surety markets can use bank limits for cash loans, thus expanding their working area.
On the one hand, there is a high potential to use surety bonds actively, while there are foreign insurance - reinsurance companies that want to use these products.
As a new development, banks have started to cooperate with surety insurers. Banks can receive support from re/insurance companies for guarantee needs of their customers.
The guarantees required by the customer can be made by sharing them between banks and insurers, as well as insurers can undertake all.
HOW WORKS SURETY SYSTEM
The surety system works differently from conventional insurances. In classical insurance, the insurer buys the risks of the insured. In case the risk occurs, the insured pays the cost of the damage. In the classical insurance procedure, there are two parties, "insurer" and "insured".
In the surety system, the insurer as the gurantor of the contractor provides assurance to the employer against the risk of not fulfilling its obligations arising from the legal relationship between the contractor and the employer. In the surety process, there are three parties: "insurer is the guarantor," "the insured is the contractor" and the "beneficiary is the employer".
1. Getting of Customer Information: The customer sends demand and company information to the insurance company.
2. Preliminary Evaluation and Rating: Customer information and credit status are assessed and rated by the insurer, then the customer is informed.
3. Getting Surety Application for the Project: The project documents and signed application form are requested from the customer. After reviewing documents, if the project meets the criteria, the customer is informed about the conditions.
4. Surety Contract: If the project is appropriate and the parties agree to the conditions, a "Surety Contract" is made between the insurer and the customer.
5. Fee Payment: The customer pays the fees determined according to the Surety Contract.
6. Issuing the Surety Bond: After the contract is made and paying the fees, the bonds are issued on behalf of the beneficiary.
ISSUING THE BONDS AND PREVENTION OF FRAMES
7. Surety bonds issued on behalf of the employer must be forwarded directly to the employer by the insurer and uploaded to the insurance company's system. The employer should be able to check the bonds issued on behalf of him by entering the system with the code given to him by the insurer.
For any questions, application and comments: