Bonds

What is a Bond?

A bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date.

What are the different types of Bonds Offer?

Goldstar insurance Company offers varies forms of Bonds ranging from:

  • Advance Payment Bonds
  • Bid Bonds
  • Customs Bonds
  • Performance Bonds
  • Retention Bonds

Advance payment bond/guarantee;

Guarantee supplied by a party receiving an advance payment to the party advancing the payment. It provides that the advanced sum will be returned if the agreement under which the advance was made cannot be fulfilled. Also called advance payment guarantee.

Bid Bond

A bid bond is issued as part of a supply bidding process by the contractor to the project owner, to in hopes guarantee that the winning bidder will undertake the contract under the terms at which they bid.

Customs Bonds

Customs surety bond is a contract used for guaranteeing that a specific obligation will be fulfilled between customs and an importer for any given import transaction. The main purpose of a customs bond is to guarantee the payment of import duties and taxes.

A customs bond is required on all commercial imports entering the Uganda. Merchandise will not clear customs without a properly executed bond.

Performance Bond

A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. A job requiring a payment and performance bond will usually require a bid bond, to bid the job.

Retention Bond

A retention bond is an agreement between a contractor, its client, and a third party known as a surety provider, which acts as a guarantor between the two parties.

The bond agreement states that in return for the client not holding cash retention, the surety provider will undertake to pay the client up to the amount that they would have had by way of cash retention should the contractor fail to carry out the works or remedy defects.

A retention bond is a win-win: the client has the monetary protection it requires and the contractor keeps hold of its cash.

Why use a Retention Bond? 

Offering a retention bond in place of cash retention can result in substantial cost savings for the contractor. The money that would have been held in cash retention remains in the cash flow of the contractor improving its financial position.

In addition, the retention bond will normally contain a fixed expiry date so there is no confusion about when the contractor has been released from his obligations.

There is also no chasing for the release of cash retention at the end of the works.

What are the requirements for Bond Issuance?

At Goldstar Insurance Company the following must be availed by the Party seeking for a Bond before Issuance:

  • Company Profile
  • Copy of trading license
  • Articles and memorandum of Association
  • Certificate of incorporation
  • Security cheque: 100% of bond amount (Signed but un dated)
  • Copy of contract document
  • Signed counter guarantee upon receiving a copy from us
  • Latest bank statement
  • Upfront Payment

Goldstar claim process

No matter what your worry is, we’re here to help explain the process, assess your claim fairly and minimize the disruption to you with a transparent claims process.
Claim process

How to make a claim

We have a number of options to help you make a claim quickly and effectively. Contact our dedicated claims team for advice on an incident/claim.
Read more

Why choose us ?

Goldstar Insurance was IFM’s Best Insurance
Company in Uganda (2015) and has over
 the years consistently maintained a Global A+ Credit Rating
Read more

INSURANCE POLICY

FAQ's
  • Cover includes comprehensive car insurance (if your car is stolen, damaged by fire or during an accident)
  • Third Party Liability (if other people claim against you for injury or damage to their car or property)
  • Personal Accident cover for the driver offering a compensation of Amount in the event of death/permanent total disablement arising from accident
Roadside Assistance
  • On road repair for minor breakdowns and Lock out or lost key assistance
  • Towing your car to the nearest garage and Emergency fuel assistance
  • Facilitating in change of flat tyre
FAQ's
  • Cover includes comprehensive car insurance (if your car is stolen, damaged by fire or during an accident)
  • Third Party Liability (if other people claim against you for injury or damage to their car or property)
  • Personal Accident cover for the driver offering a compensation of Amount in the event of death/permanent total disablement arising from accident
Roadside Assistance
  • On road repair for minor breakdowns and Lock out or lost key assistance
  • Towing your car to the nearest garage and Emergency fuel assistance
  • Facilitating in change of flat tyre
0
Connecting
Please wait...
Send a message

Sorry, we aren't online at the moment. Leave a message.

Your name
* Email
* Describe your issue
Login now

Need more help? Save time by starting your support request online.

Your name
* Email
* Describe your issue
We're online!
Feedback

Help us help you better! Feel free to leave us any additional feedback.

How do you rate our support?