Book IV: Organisations and special insurance schemes

Cover for political, catastrophic and foreign exchange risks inherent in import transactions covers losses that the importer may incur on sums that it proves it has paid for the strict performance of its contract.

The political risk is realised 1° When the goods cannot be dispatched or cannot leave the country of dispatch or do not reach the country of destination as a result of one of the following incidents occurring in the country of dispatch or in transit: a) Export ban imposed by the authorities of the country of dispatch; b) Capture, arrest, seizure, requisition, coercion, molestation or detention by a foreign government…

Catastrophic risk occurs when, as a result of a cataclysmic event, such as a cyclone, flood, tidal wave, earthquake or volcanic eruption, occurring in the country of dispatch or in transit, the goods cannot be dispatched, are destroyed or damaged or are subject to additional costs that are not recoverable from the seller.

The foreign exchange risk arises when the exchange rate of the foreign currency covered by the purchase contract is higher on the day the foreign currency is purchased than the rate on the basis of which the guarantee is granted. This risk can only be guaranteed if there is no other way of hedging it under equivalent conditions.