FREQUENTLY ASKED QUESTIONS
(Q) What are the products provided by UIIC?
(A) UIIC provides cover against political risks related to trade and investment into Uzbekistan, including contract repudiation, wrongful calling of guarantee and investments/assets confiscation insurance.
(Q) Who are the clients of UIIC and how UIIC products meet their demand?
(A) UIIC products are designed to protect interests of financial institutions, investors, foreign trading companies and contractors engaged in international trade with Uzbekistan.
Financial institutions might benefit from transferring political risk out of transactions linked to trade finance, project and asset-backed loans, working capital credits and bank inter-branch lending.
For investors, Uzbekistan is the country with transition economy and this status itself assumes unpredictable changes in government policy causing threat to investors’ operations in Uzbekistan and eventually to their physical assets and investments in addition to intra-company profit repatriation.
(Q) What is UIIC’s policy period?
(A) UIIC issues policies for the period up to 7 years.
(Q) How much does it cost?
(A) Premium rates will vary depending upon the risks insured, the policy period, the amount of self-retention or deductible and the layered approach to loss attachment, the number of risks insured (discount for all risks vs selective risk placement), the creditworthiness of the obligor or guarantor, the nature of investment and other factors.
(Q) Does UIIC have a minimum premium?
(A) Yes, we rarely insure individual transactions where the premium is less than USD 10 000.
(Q) Can an insured ask UIIC to cover just one type of risk?
(A) Yes, each policy is tailor made, and each request is judged individually on its merits.
(Q) What type of limits does UIIC have?
(A) UIIC applies the following pre-risk sub limits:
Percentage of net admissible* assets:
Aggregate risk per project - 20%
Aggregate risk per contract - 20%
Aggregate risk per insured - 20%
Aggregate risk per industry** - 50%
Aggregate risk per investor country - 100%
* current admissible assets equal to 50 mln. USD + limits of co-insurer
** eg. Oil/gas exploration, energy distribution, banking, agriculture, communication, textile manufacturing
(Q) Does UIIC have a list of acceptable Uzbek financial institutions?
(A) Yes, UIIC’s current list is limited by such Uzbek financial institutions as the Ministry of Finance of the Republic of Uzbekistan, National bank for Foreign Economic Activity of Uzbekistan, Asaka bank and others on case-by case basis.
Applying For UIIC Coverage
(Q) When should an applicant approach UIIC for coverage?
(A) Preliminary applications should be submitted before a contract is irrevocably committed.
(Q) How does preliminary enquiry works?
(A) Applicant may submit a confidential preliminary enquiry. UIIC’s underwriting agent will issue a non-binding indication within 72 hours. A non-binding indication will often specify any subjectivity or further information required taking matter forward.
Please contact us or leave send your questions here.
An Insurance Glossary is available here.