Performance Bond


As follows, there are two types of Performance Bond Takaful schemes offered under the Bond Takaful Class:
Counter Indemnity
Takaful Guarantee
Takaful Guarantee for Foreign Workers

Subject Matter Covered

Counter Indemnity/Takaful Guarantee
The Project’s Contract between the Participant and the Principal

Scope of Cover

Counter Indemnity/Takaful Guarantee
Indemnify the Bank or the Principal of the contract against any claims or losses they may suffer up to the guarantee amount as a consequence of failure of the Participant (Contractor) to perform in accordance with the plans, specification and conditions of the contract.

Takaful Guarantee for Foreign Workers
The purpose of Takaful Guarantee for Foreign Workers is to guarantee the payment on the cost of repatriation of the foreign workers, in the event that the employers fail to repatriate their foreign workers to their country of origin, as per required by the Labour Department and stipulated in Rules 6 of the Labour (Immigrant Workers’ Employment Licenses) Rules, Labour Act (Cap 93) and Section 112 of the Employment Order, 2009.

The expenses (subject to approval granted by the Commissioner of Labour) shall include as follows:

The cost of repatriation;
The cost of subsistence*;
Accommodation*; and
Medical expenses*.

This Takaful Guarantee may also be used for payment of unpaid salaries which are not afforded by the employers in cases of disputes or as per instruction by the Commissioner of Labour.

Note:
*Expenses incurred during the course of repatriation only.

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