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Political Risk Insurance for Plant and Equipment |
Terms and Conditions
EFIC insures Australian companies using or deploying plant and equipment in connection with a foreign investment or overseas project. Our Political Risk Insurance - Plant & Equipment policy provides protection against losses due to destruction of, or damage to, plant and equipment where the destruction or damage was caused solely and directly by insured political events. Insured Any company operating in Australia that is deploying, or investing in, plant and equipment for use in a project outside Australia. Foreign Enterprise The overseas company in which the Insured makes the investment in the plant and equipment. Insurable Plant and Equipment Insurance can be extended to cover plant and equipment that is owned outright by the Insured. Plant and equipment that are leased may be eligible for cover depending on the type of lease arrangement Insured Political Events EFIC will provide insurance against loss due to damage to, or destruction of, the Insured’s plant and equipment where the damage or destruction is caused solely and directly by one of the following political events: - expropriation;
- war damage/political violence;
- deprivation; or
- forced abandonment (option).
EFIC's Maximum Liability This is the maximum amount which EFIC will ensure and will be determined based on the value of the plant and equipment. Level of Indemnity Amounts may be indemnified up to a level of 100% (subject to the Insured assuming a first loss amount). Term of Policy A policy’s term will be for a duration: - of up to 10 years where the plant and equipment are used in connection with a foreign investment, or
- equal to or less than the term of the overseas project where the plant and equipment are to be deployed or used for such project.
Currency of Policy Policies will be issued in the same currency as the investment in the plant and equipment or the currency of the export contract. This must be a freely available and convertible currency.
Costs EFIC’s premium will vary depending on factors including the country for which cover is sought, the region where the investment or project is located, the period of insurance, the political risks being insured and the type of investment or project being undertaken.
DISCLAIMER This document is provided to give you an indication of the terms and conditions upon which EFIC may be willing to provide insurance. In connection with a particular transaction, EFIC reserves the right to make any changes or additions to the final terms and conditions that it believes are necessary or desirable. All requests for insurance are considered on a case by case basis.
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