Sample Bid Bond for insurance Services

Date : 18/12/2012

Our Ref. : DBRGSLKR1201254

CAR INSURANCE QUOTS (PVT) LTD

Dear Sir

BID BOND NO : DBRGSLKR1201254 FOR LKR 100,000.00
ISSUED ON BEHALF OF  ................INSURANCE QUOTS PLC.
.............................................................................................................................................................

In consideration of your accepting from ....................INSURANCE QUOTS PLC. a company incorporated in the Republic of Srilanka and having its registered office at No 100/1 Kootte Road Latin amaricawa, a bid for the Provision of insurance services. we the ___________ bank PLC of No 21 capital road America. do hereby undertake to pay you on your written demand a sum of money not exceeding LKR 100,000.00 (sri lankan Rupees one hundred thousand only) should    ................INSURANCE QUOTS PLC, fale to enter into and execute a contract with you on the basis of the award.

Notwithstanding anything stated herein above, our liability under this guarantee is restricted  to LKR 100,000.00 (sri lankan Rupees one hundred thousand only)as aforsaid, and every payment made by us hereunder shall be in pro-tanto discharge of all liabilities under this guarantee.

A demand hereunder shall be in writing and shall precisely specify the amount demanded and state that the above named  ....................INSURANCE QUOTS PLC., has failed to enter in tot he contract with you on the basis of the award . Any such written demand shall be conclusive evidence that ....................INSURANCE QUOTS PLC, has failed to enter in to and execute the contract and we are liable to pay to you the sum demanded provided the same does not exceed the limit  KR 100,000.00 (sri lankan Rupees one hundred thousand only) as aforsaid.

Your written demand should be addressed and delivered to the Foreign Branch of the ________ Bank PLC at no 21 capital road America, 

Our liability under this guarantee will expire on 16 October,  2012, after which date this gurantee shall be null and void and shall be of no force or evail in law an shall be returned to us for the formal cancellation thereof (for the purposes of our records only) and unless we receive any written claim or claims on or before the date stipulated above, all your rights under this guarantee shall automatically be forfeited and we shall be relieved and discharged from liabilities hereunder.

For -  ________ Bank PLC 

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Authorized Signature                                                        Authorized Signature

You are encouraged to verify the authority off this by contacting any of the following purposes 

Mr .______ _____ Ranepura                                            Mr. ________ madiwala
Senior Manager - Guarantees,                                            Senior Manager - Imports
________ Bank PLC                                                        ________ Bank PLC
Tel  : 011-2576845                                                           Tel  : 011-2576254
Fax : 011-2576456                                                           Fax : 011-2576256