Import Advance Payment Insurance
Import Advance Payment Insurance
After the insured makes advance payment under the import contract within the insurance policy period, the insured may request the foreign supplier to refund the advance payment pursuant to the import contract. If the advance payment cannot be recovered due to any insured risk in spite of the refund request made within the insurance policy period, the insurer will pay indemnity according to the insurance contract to cover the insured’s direct loss so incurred.
| Covered risks | Commercial risks | The foreign supplier becomes bankrupt or insolvent or defaults on the payment of advance payment refund; |
| Political risks | The country or region of the foreign supplier promulgates a law, decree, order or regulation or takes administrative measures to prohibit or restrict the foreign supplier from refunding the advance payment to the insured in the currency specified in the import contract or any other freely convertible currency; | |
| The country or region of the foreign supplier or a third country through which the refund has to be routed issues a moratorium; | ||
| Any war, civil disturbance, rebellion, revolution or riot occurs in the country or region of the foreign supplier, which makes the foreign supplier unable to refund the advance payment; any other event considered as political risk by the insurer |