Insurance coverage against political risk of losses relating to overseas investment i.e. losses from imposition of laws or any action taken by host government that adversely affects project investment or the investor’s repayment ability.
Types of Policy
1. Equity Insurance covering losses on assets, profits or other monetary benefits derived from the insured investment.
2. Loan Insurance covering the original principal and interest amount according to the repayment schedule under a loan agreement.
Project has Thai national or Thai company as a shareholder.
Political Risk Covered
1. Inconvertibility, transfer restriction, or exchange blockage
2. Expropriation by host government
3. War and civil disturbance in host country
4. Breach of contract by host government
Policy will be specified in Baht, US dollar, Euro, Yen, or Pound Sterling.
Percentage of Cover
Policy will cover up to 90% of actual losses.
Policy will provide coverage from 3 to 15 years.
Terms of Coverage
Details of cover including insurance period, amount covered, percentage of cover, and risks covered will be specified in the insurance policy. The coverage will be effective once the premium has been paid and all precedent conditions are fulfilled.
An application or information analysis fee of 0.1 percent of the maximum amount of insurance but not exceeding 100,000 Baht will be applicable. This fee will be deductible from the premium when the policy is issued.
Premium rate will be specified as a percentage of the yearly amount of insurance. This premium is charged on the current amount of insurance and collected up-front each year when the policy is issued and renewed.
Interested investor can submit the Preliminary Application Form including relevant documents to EXIM Thailand for assessment before the investment is committed. Definitive Application along with application fee is required in order to obtain an insurance policy.
Occurrence of Loss and Claim
Policyholder is responsible to notify EXIM Thailand for any adverse information and occurrence of losses in writing within 30 days. Claim notification must be submitted within 90 days from the date of loss determined by EXIM Thailand. Policyholder will be informed of the claim justification within 120 days from the date of claim submission or from the ending date of waiting period, whichever is later.
For further information, please contact