Thursday, December 14

Insurance Financial Business Risks

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Insured event is the failure (improper fulfillment) as a result of unintentional actions (or inaction) by the debtor of the Insured of its contractual obligations to him in the manner and time stipulated in the contract (non-payment of goods, works or services, failure to deliver goods or products, failure to work), which led to complete or partial loss of income insured, additional costs, legal costs, loss of or damage to property (real damage).

Failure to comply with (improper fulfillment) of the debtor of the Insured of its contractual obligations to him for a business recognizes the insured event only if the proper performance under civil legislation of the Russian Federation was not possible due to force majeure, that is extraordinary and unavoidable under the given conditions, natural disasters during the and in the place of performance, stopping or reducing the volume of production as a result of fire, accident, explosion, natural disaster, the debtor’s bankruptcy, confirmed by a court or other procedures prescribed by the legislation of the Russian Federation, which led to: –

1. Non-payment of goods delivered, work performed or services rendered;

2. Non-delivery of paid goods, failure to paid work, lack of paid services;

3. Complete or partial loss of income insured, additional costs, litigation costs, loss of or damage to property (real damage) due to the reduction or stopping production.

Insured event is occurred, if at the expiration of the contract the debtor is insured has not fulfilled its obligations to policyholders, if the insurance contract does not stipulate a different period beginning liability insurer.

Period following the date fixed by the contract of insurance as the deadline debtor’s obligations to policyholders.

From the Insurer’s liability excluded cases of failure (improper fulfillment) of the Insured by the debtor of its obligations under the contract resulting from:-

• Breach of duty on the part of counterparties of the debtor;

• lack of market necessary for the execution of the goods;

• the debtor has no necessary funds;

• inconsistencies law of contracts (agreements), including those arising from the changes in the law during the term of the contract;

• any kind of military action or military actions and their consequences, insurrections, riots, civil commotions and strikes;

• confiscation, nationalization and similar policy measures taken by order of civil or military authorities, and political organizations;

• banning or restricting the remittance from the debtor country or countries through which follows payment moratorium, non-convertibility of currencies;

• debt cancellation or rescheduling of debt in accordance with bilateral governmental and multilateral international agreements;
I) abolition of import (export) license, the imposition of embargoes on the import (export);

• non-performance or improper performance of their obligations to the insured contractor;

• Failure to provide required documents (shipping documents, export permit, or delivery of goods, licenses, etc.);

• Willful failure of the Insured counterparty obligations under the contract evidenced by a court (arbitration).

Contract does not cover losses of the Insured, caused by exchange rate differences, penalties, default interest, penalties and other indirect costs.

Limit of liability of insurer under the insurance contract is the sum insured.


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