Political Risk Insurance

Protect your off shore projects with Industry Leading Global Political Risk Solutions

Political Risk Insurance is available to insure against the perils associated with:

Confiscation Expropriation and Nationalisation

An act occurring 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:

  1. Expressly and permanently deprives the insured of all or part of its shareholding in the foreign enterprise
  2. Expressly and permanently deprives the foreign enterprise of all parts of it and/or current assets, or
  3. 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.

Deprivation

The inability to export finished product from the foreign investment or to repatriate mobile assets.

Forced Abandonment

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.

Abrogation

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

  1. Terrorism
  2. Sabotage
  3. Mutinity, Insurrection

Malicious Damage

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.

Currency Inconvertibility

The inability to convert and transfer dividends or proceeds from a forced sale of the shareholding.

Contract Repudiation

Pre-Shipment

  • War
  • Embargo
  • License Cancellation
  • Unilateral Termination of Contract

Post-Shipment

  • Non-payment by Government Buyer
  • Transfer Risk
  • Failure of Central Bank to Honour Letter of Credit
  • Arbitration Award Default
  • Repossession of Assets

Wrongful Calling of Guarantees Policy Coverage

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

Commercial Risk
  • Contractual/Obligor Default – Including Failure to pay
  • Arbitration Default – Arising out of Contractual Disputes
  • Exchange Transfer Embargo – Transfer of Contractual Payment
Sovereign Risk
  • Import/Export Embargo/Licence Cancellations – Contract Frustration due to Government Interference
  • War- Contract Frustration due to War
Asset Rink
  • 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
  • Expropriation- Investments
Investment Risk
  • Abrogation of Joint Venture/Concessions/Tax Agreements – Selective & Discriminatory Action
  • Inconvertibility – Repatriation of Dividends, Equity, Proceed

To learn more about our Political Risk Insurance & how it can protect you

For more information

+ 61 2 8019 7269
political@steningsimpson.com.au

Our Customers Say

Since 1979, JIB has enjoyed a close working relationship with the Stening Simpson Group.  The relationship grew to the extent that in 1993 a formal trading Agreement was signed between the two companies. The alliance gives clients a service unmatched by any other broker.

Stephen R

Stening Simpson
2020-10-21T17:42:00+11:00

Stephen R

Since 1979, JIB has enjoyed a close working relationship with the Stening Simpson Group.  The relationship grew to the extent that in 1993 a formal trading Agreement was signed between the two companies. The alliance gives clients a service unmatched by any other broker.
The Stening Simpson Group of Companies and the Principals have been well known to me for the past 5 years. During this time Stening Simpson Group have proved to be companies of very high integrity with a commitment to their clients, seldom seen in today’s Business and Finance world. I have formed the very definite opinion that Stening Simpson offer a service second to none.

Don K

Stening Simpson
2020-10-21T17:42:45+11:00

Don K

The Stening Simpson Group of Companies and the Principals have been well known to me for the past 5 years. During this time Stening Simpson Group have proved to be companies of very high integrity with a commitment to their clients, seldom seen in today’s Business and Finance world. I have formed the very definite opinion that Stening Simpson offer a service second to none.
The AFMA has dealt with Stening Simpson Group since 1992 during which time they have acted as our Broker for numerous indemnities.  AFMA has found Stening Simpson to be efficient, reliable and competitive.

Frank M

Stening Simpson
2020-10-21T17:43:15+11:00

Frank M

The AFMA has dealt with Stening Simpson Group since 1992 during which time they have acted as our Broker for numerous indemnities.  AFMA has found Stening Simpson to be efficient, reliable and competitive.
Stening Simpson has shown superior technical, market and client knowledge. The creative and tailored solutions they apply have allowed clients to grow profitably and led to very satisfied clients who rely on Surety lines. We look forward to a long mutually rewarding relationship.

Richard W

Stening Simpson
2020-10-21T17:43:51+11:00

Richard W

Stening Simpson has shown superior technical, market and client knowledge. The creative and tailored solutions they apply have allowed clients to grow profitably and led to very satisfied clients who rely on Surety lines. We look forward to a long mutually rewarding relationship.
We are a small construction company.  Stening Simpson secured a Surety Bond facility for us, which considerably assisted our cash flow.

John L

Stening Simpson
2020-10-21T17:44:30+11:00

John L

We are a small construction company.  Stening Simpson secured a Surety Bond facility for us, which considerably assisted our cash flow.
Stening Simpson have provided professional and prompt service over the 20 plus years we have been a client

John S

Stening Simpson
2020-10-21T17:45:11+11:00

John S

Stening Simpson have provided professional and prompt service over the 20 plus years we have been a client
We are a publicly listed company and have utilised the service of Stening Simpson in excess of 10 years.  They have supported our company through some very difficult years

Sam L

Stening Simpson
2020-10-21T17:45:49+11:00

Sam L

We are a publicly listed company and have utilised the service of Stening Simpson in excess of 10 years.  They have supported our company through some very difficult years
Stening Simpson is one of the most professional groups.  They have been one of the primary reasons for our success due to them securing multiply facilities on our behalf at significantly reduced rates compared to our Bank Guarantee rate.

Frank I

Stening Simpson
2020-10-21T17:46:23+11:00

Frank I

Stening Simpson is one of the most professional groups.  They have been one of the primary reasons for our success due to them securing multiply facilities on our behalf at significantly reduced rates compared to our Bank Guarantee rate.
It has been an absolute pleasure working with Stening Simpson. We appreciate you finding us the Bond Facility through Berkshire.  We thank you for your advice, availability and timely execution of Bonds. We look forward to continue working together next year.

Zaheer G

Stening Simpson
2020-12-23T06:21:18+11:00

Zaheer G

It has been an absolute pleasure working with Stening Simpson. We appreciate you finding us the Bond Facility through Berkshire.  We thank you for your advice, availability and timely execution of Bonds. We look forward to continue working together next year.

I have known the Stening Simpson team since 1999; for over 20 years. Through our Company’s Surety Bond facilities arranged by Stening Simpson, the late Peter Stening, Elaine Simpson and David Wright have always been supportive to our Company, our Surety Bond providers’ relationships, periodic facility renewals and our many day-to-day Surety Bond requirements. The Stening Simpson team has always acted professionally, respectfully and with a high level of excellent customer service and care.

Frank I

Stening Simpson
2020-12-23T06:28:00+11:00

Frank I

I have known the Stening Simpson team since 1999; for over 20 years. Through our Company’s Surety Bond facilities arranged by Stening Simpson, the late Peter Stening, Elaine Simpson and David Wright have always been supportive to our Company, our Surety Bond providers’ relationships, periodic facility renewals and our many day-to-day Surety Bond requirements. The Stening Simpson team has always acted professionally, respectfully and with a high level of excellent customer service and care.
0
0
Stening Simpson