SALIENT FEATURES
- Consequential financial loss
- Political violence
- Confiscation of property
- Inconvertibility of currency
- Non-repossession of aircraft
- Trading risks
- Kidnap and ransom
Consequential financial loss
Consequential financial loss insurance provides cover for miscellaneous financial losses incurred by the insured as a result of political actions affecting their interests. The risk location is the territory in which the insured’s business establishment is located. If the contract covers more than one business establishment, situated in different territories, each business establishment will create a separate risk location.
Political violence
Political violence insurance provides cover for physical damage to property as a result of political risks and any consequential financial loss.
Fixed property
The risk location for immovable property is determined by the territory in which the property is situated. If the property is situated in more than one territory, then there may be multiple risk locations.
Moveable property
In most territories, the risk location is where the moveable property is normally situated. If the contract covers moveable property situated in more than one territory there may be multiple risk locations. Where the moveable property’s location is uncertain or variable, the risk location is the territory in which the insured’s residence or business establishment is located.
Confiscation of property
Confiscation insurance covers losses arising from property confiscated as a result of political action and any consequential financial loss. The risk location is determined in the same manner as the associated property. If the property is situated in more than one territory there may be multiple risk locations.
Kidnap & ransom
Kidnap and ransom insurance provides cover against kidnap, hijack and bodily injury. It may be taken out by individuals, to provide personal protection for themselves or family members or by corporate entities to protect employees. The risk location is usually the territory in which the person or corporate entity taking out the insurance is resident or its business establishment is located.
