How to choose a product
Check the risk type to be secured by a product.
Before product selection, risk type should be checked to review what will be the loss incurring from the Principal’s default, and to what degree the loss will be secured.
Please refer to the section of products introduction for specific information what risk each product covers.
Check to see if the bond amount is appropriate.Bond amount and bond period are determined according to the terms and conditions of the contract. Mostly the bond amount is calculated a certain percentage of the contract amount, and the bond period normally goes with the contract period.
Check the following factors that determine bond premium.Premium rates vary depending on factors such as risk type, range of loss, bond amount and period, and claim payment criteria and method.
Bond Issuance Process
- Client Registration
To apply for a bond, a client needs to be registered by SGI Hanoi Branch. To register the client information, the client is requested to submit the documents as below;
Documents needed : Certificate of business registration/Certificate of investment registration, Certificate of tax registration, Audited financial statement for recent 3 years, Progress report on on-going project etc.
- Bond Application
The Principal submits the application form(SGI Hanoi Branch Form) and other required documents to the Branch Office. Please check the documents needed for bond application.
Documents needed : Bond application form, Contract or Subcontract including bill of quantity, Settlement agreement(esp. for Maintenance Bond), brochure of the company or credit report etc.
- Underwriting Review on Bond Application
The underwriter reviews the application submitted and the contract. In case the Principal has selected a wrong product or the bond amount or bond period does not match with the contract, the bond application should be amended properly.
The underwriter evaluates and analyzes the Principal’s ability to perform obligations under the contract.
- Issuance of Debit Note for premium payment
When underwriting has been finished, SGI Hanoi Branch issues debit note for premium payment
- Payment of premium
The Principal pays the premium by cash or bank transfer. Payment by credit card is not acceptable.
- Conclusion of bond agreement
The Principal is requested to conclude a bond agreement with SGI Hanoi Branch. To conclude the bond agreement, corporate seal and signature by a legally authorized representative of the Principal are required.
Documents needed : notarized copy of certificate of investment or certificate of business registration, notarized copy of certificate of tax registration, copy of ID card of a person who has authority to sign on the bond agreement, original copy of power of attorney(if applicable)
- Issuance of Bond and VAT invoice
SGI Hanoi Branch issues the bond and VAT invoice. The bond is written in English.
Personal Loan Bond
The application for personal loan bond can be made at the bank which has signed the comprehensive agreement with SGI Hanoi Branch. Currently, Shinhan Bank Vietnam is the exclusive partner for this product. Please contact the nearest branch of Shinhan Bank for more details on this product.