POLITICAL RISK INSURANCE
UIIC provides insurance coverage for investment and trade transactions against certain political risks caused by the actions of the government, or political events in the host country towards foreign investors and lenders.
UIIC provide the following risks coverage:
Political risk insurance for equity investor
* Confiscation, Expropriation and Nationalization — government confiscation, expropriation or nationalization of an enterprise that results in partial or total loss of investments or assets.
* Currency Inconvertibility or Non-Transfer — government controls that prevent the purchase or transfer of hard currency for dividend payments, loan repayment or other remittances.
* Political Violence — politically motivated acts of violence, including war and civil war, that result in physical damage to property.
Programs can be enhanced to address losses due to a number of other specialized risks, including:
* Forced Abandonment or Forced Divestiture — complete abandonment of a foreign investment as a direct consequence of political violence or permanent divestiture of all or part of the insured investment at the direction of the insured’s government.
* Export or Operating License Cancellations — cancellation of a valid export or operating license by the host government.
* Business Interruption — loss of projected net profit resulting from an act of expropriation or political violence
Political risk insurance for importers and exporters
* Wrongful Calling of Guarantees - a legitimate concern of contractors operating overseas is the wrongful calling of unconditional and irrevocable guarantees. UIIC’s Wrongful Calling of Guarantee Insurance helps protect contractors against unexpected losses which may result from the calling of a bond or guarantee due to no fault of the insured.
Insured events include:
- arbitrary and unfair calling of a guarantee by a government sector obligor;
- legitimate calling of a guarantee due to actions by either the foreign government or the contractor’s government;
- calling of a guarantee due to the outbreak of war, revolution or insurrection;
- non-honouring of an arbitration award when the contractor has obtained an arbitration award in its favor.
Coverage can be arranged for various types of guarantees, including on-demand bid bonds, performance bonds and advance payment guarantees. We can insure individual bonds or portfolios of bonds.
* Non-Payment by a Sovereign Buyer — failure of a government obligor to honour its payment obligations under a purchase contract
* Non-Delivery by a Sovereign Supplier — failure of a government obligor to deliver under a sales contract
* Non-Honouring of a Sovereign Guarantee — failure of a government guarantor, such as the Ministry of Finance, Central Bank or a government-owned bank, to honour its payment obligations under a guarantee issued in support of a trade contract.
Please contact or visit us for detailed information and application forms.