Political Risk Insurancedwright2023-03-10T12:32:30+11:00
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POLITICAL RISK INSURANCE
Protecting your off shore investments.
Political Risk Insurance is available to insure against the perils associated with:
Confiscation Expropriation and Nationalisation
An act occuring within the policy period not limited to expropriation but including also confiscation, nationalisation, requisition and sequestration by law, or administrative action of the government of the host country which:
Expressly and permanently deprives the insured of all or part of its shareholding in the foreign enterprise
Expressly and permanently deprives the foreign enterprise of all parts of it and/or current assets, or
Expressly and selectively prevents or restricts the operation of the foreign enterprise so as to cause the permanent and total cessation of it’s activities.
The inability to export finished product from the foreign investment or to repatriate mobile assets.
of the investment or mobile assets due to foreign country’s deteriorating security situation where such abandonment is at the direction of the Investor’s government.
A production, concession or other government guaranteed agreement where such an act is expropriatory and discriminatory in nature.
Law, Order Decree or Import/Export Restriction
The foreign government which selectively discriminates against the foreign investment so as to cause the permanent cessation of activities.
Mobile Plant and Equipment
A comprehensive policy that includes coverage for C.E.N., Deprivation, War, Political Violence and Forced Abandonment.
Property Terrorism and Sabotage/Strikes Riots and Civil Commotion
The Insurance covers the insured for it’s loss resulting from the following incidents, and any ensuing fire damage, damage from looting, or other damage caused by an act of a lawfully constituted authority for the purpose of suppressing or minimising the consequence of any of the following incidents
Malicious Damage shall mean all Physical loss or damage resulting directly from a malicious act caused by anyone whether or not the aforesaid act is committed during a disturbance of the public peace and shall include loss caused by sabotage and acts committed by any or all persons who are member(s) of an organisation whose aim is or includes the over-throwing of any legal or defacto Government by terrorism or violence.
War on Land
The Policy will indemnify the Assured in the manner and proportion set forth herein against physical damage to or physical destruction of Property during the Policy Period in a Country directly caused by war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom or any hostile act by or against a belligerent power.
The inability to convert and transfer dividends or proceeds from a forced sale of the shareholding.
Unilateral Termination of Contract
Non-payment by Government Buyer
Failure of Central Bank to Honour Letter of Credit
Arbitration Award Default
Repossession of Assets
Wrongful Calling of Guarantees Policy Coverage
The arbitration and Unfair Call by either a Sovereign Obligor or Private Buyer
The rightful call by a private Sector Obligor due to a Government action
Inherent Risks Contractual Risk
Contractual/Obligor Default – Including Failure to pay
Arbitration Default – Arising out of Contractual Disputes
Exchange Transfer Embargo – Transfer of Contractual Payment
Import/Export Embargo/Licence Cancellations – Contract Frustration due to Government Interference
War- Contract Frustration due to War
War & Riots Strikes/Forced Abandonment – Political Violence causing Physical Loss or Damage to Goods or Equipment plus Kidnap/Detention/Extortion
Confiscation/Non Repossession and Deprivation – Mobile Goods & Equipment
Abrogation of Joint Venture/Concessions/Tax Agreements – Selective & Discriminatory Actio
Inconvertibility – Repatriation of Dividends, Equity, Proceed