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A performance bond safeguards the interest of the owner of a project and ensures that the project finishes on time, irrespective of any unforeseen circumstance that may otherwise hinder the completion of the project. Following are some of the key benefits of performance bond:

Confidence: Performance bond Singapore lends credence to the ability of a contractor who is about to undertake a project, as stringent measures are taken to assess the financial and professional credentials of the contractor before the bond is issued. The whole prequalification process instills project owner’s confidence in the contractor as the project owner is assured about the ability of the contractor and enough proof that the contractor, in the past, has complied with the guidelines of the completed projects.

Financial security: A performance bond ensures that the project owner doesn’t incur any loss during the course of the project, if the contractor defaults, or pays any additional cost for the completion of the project. If the contractor fails to comply with the terms and conditions of the project or declares bankruptcy before the completion of the project, the owner becomes entitled to make a claim and that’s when the surety company steps in. The surety company then verifies the legitimacy of the claim and takes a decision based on the findings. If the claim has substantial merit, then the surety company ensures that the owner is not impacted financially as a result of the default.

Guarantees completion of a project: A performance bond is meant to protect the interest of a project owner and it ensures the completion of a project even if an undesirable situation crops up. If a contractor fails to adhere to the terms and conditions specified in the contract, the surety company steps in to ensure that the project finishes as planned. Upon receipt of a valid claim, the surety company would either provide financial funding for the completion of the project or would hire a new contractor to complete the pending work.

Apart from that, performance bond Singapore entails other associated benefits as well. If the contractor exceeds the deadline of the project or violates budgetary constraints specified in the contract, the project owner can make a claim. In short, it provides all necessary protections to project owners and they should ideally ask contractors to obtain performance bonds before entering into a contract so that their project is not affected by a situation that can be avoided if preventive measures are taken.

Many people get baffled as far as the topic of car insurance is concerned. Moreover, there are so many myths that surround the subject of vehicle insurance, aggravating the situation further. These misconceptions about the vehicle insurance can be easily busted when you do dome sort of a research. When you are aware of the facts, you are in a much better position to select the right car policy and ensure that you enjoy the most profitable rate.

Take a look at some of the top myths that are associated with car insurance and the fact behind them.

Myth 1: All car insurers rate in the same manner.

Here is a myth that makes many people believe that in their unique scenarios like an accident, being a new driver or a ticket will not let them get a more profitable premium eaten anywhere else. In reality, all car insurers follow their own unique system to rate coverage. Each insurer then goes on to give a distinct rate according to a host of factors, which determine the premium rates. So, if you shop around before making the final decision, it will be a wise decision.

Myth 2: You are entitled to purchase a car insurance policy irrespective of the type of car you are driving

This is not true at all. Irrespective of whether you are driving a car that belongs to your friend or a rental vehicle, your coverage may not always follow you in the capacity of a driver. Insurance is linked with the driver but with the car. So, if you are driving a friend’s car, it is their insurance, which will take a priority for paying a claim. As far as the rental cars are concerned coverage for that can be added to your car insurance policies. However, if you do not add it, you will not get any cover for a damage caused to your rental vehicle.

Myth 3: You need not pay for an increase in the event of accident forgiveness

If you want to avoid an increase in insurance for that first accident of yours, accident forgiveness is a great option. However, you need to bear in mind that the feature has got its own set of limitations. All insurers have certain situations that are out of their forgiveness program. If you intend to change your insurer, the previous forgiveness does not move with you. Your new car insurer can even charge you for fault insurance, which is on the record.

Myth 4: It is not possible for the new drivers to bring down their rates

While there is no doubt that a new driver may end up paying higher rates that does not signify that the insured cannot do anything about it. Insurers may offer some discounts to the new drivers so that they can avail lower premium rates such as discounts on courses for driver education and discount for the good students.

Allegiance can take care of all your queries on insurance related services and levy bonds.