Turkish Insurance News

A first from Quick Insurance! The Bank will replace the Letter of Guarantee Bail …

Bail Insurance Application Started

A first from Quick Insurance! The Bank will replace the Letter of Guarantee Bail …
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11 Ekim 2018 - 17:04

Quick Insurance General Manager Ahmet YAŞAR said in a statement We started as a pilot application for some time especially to meet the collateral needs of the private sector in public procurement processes; they provide an important instrument to speed up the work of the sector, “specifying” a first in Turkey organized under the surety bond companies can offer Quick Insurance surety Insurance guarantee letters instead of participating in the tender, he said.

As per the amendments to the Public Procurement Law numbered 4734 published in the Official Gazette dated December 5, 2017, to allow them to submit bail bonds within the scope of bail insurance instead of bank guarantee letter and as a letter of guarantee in tenders organized under the surety bond surety insurance by insurance companies resident in Turkey it may also be arranged.

In this context, the pilot continued to work within a framework of Quick Bail Bonds Insurance Temporary arrangements began to be used in public procurement for the first time in Turkey.

As the credit limits became even more important in terms of the companies, it has created a new and additional capacity to meet the collateral needs of the private sector of Bail Bonds and the related Bail Bonds offered to the market by Quick Insurance. In this way, the use of credit limits extended by banks for the need for collaterals in other areas by the real sector has been paved and alternative product has been provided to meet the collateral needs.

Quick Insurance General Manager Ahmet Yaşar stated that they received very high demand on bail insurance, ”Our teammates have been working on the market for about 6 months and these studies, which we have carried out in a narrow space, have already attracted a great deal of attention in the business world and have met a significant need,“ he said. Ahmet Yaşar stated that people who want to get information about the product which is in high demand can send e-mails to kefalet@quicksigorta.com and reminded that they have started initiatives in the field of legislation regulators in order to meet the needs of the customs brokers.

As regards the issue, Quick Insurance CEO Levent Uluçeçen said, 75% of the non-cash loans provided by banks constitute letters of guarantee, 100% of the letters of guarantee are provided by banks, In America, all of the insurance companies met, this ratio is 50% in Asia Pacific and 25% in Europe, From the moment we started to operate, we took into consideration the needs of our country and the economic system and said that we were able to supply the demands. Levent Uluçeçen stated that they are happy to realize the firsts in the sector, our friends are working on the products that can meet the needs in many areas. As a new company, we are very pleased with our brand awareness and the policy figures we produce.

What is bail insurance and bail bonds?

This insurance product called Surety Bond or Bonding in international terminology, It is an alternative to the bank guarantee letters provided by the banking system, but does not affect the credit limits of the debtor. With the bail insurance, the insurance company is the guarantor of the insured, that is, the tenderer or the debtor, and provides the guarantee against the risk that the insured cannot fulfill the obligation defined in the bail bond against the beneficiary or the creditor. The bail insurance contract is arranged between the policy insurer and the insured. After this agreement is arranged, the text given to the beneficiary is not the policy but the bail bonds as in the insurance contracts(surety).

In many countries of the world, such as a letter of guarantee, the letter of guarantee in the American market is covered by insurance companies, while this rate is 95% in South America, 50% in Asia Pacific and 25% in Europe. Most of the bail insurance is related to construction, manufacturing, construction-repair, energy and infrastructure projects. It can be used in all public tenders in our country.