SID Bank - Insurance - Export credit insurance - Insurance of pre-delivery risks

Insurance of pre-delivery risks

Insurance of pre-delivery risks enables the exporter reimbursement of production expenses, due to his inability to supply the goods agreed by contract because of outset of non-commercial risks (including interruption of transport lines) and/or certain commercial risks (cancellation of contract, bankruptcy of the buyer).

This type of insurance is used mainly in case of special orders/contracts with a foreign buyer, where preserver sale is hindered by special characteristics of the equipment, and when performing investment work abroad, where the performer is exposed to risks connected with already performed, but not as yet acknowledged works, during the whole period of performance.

The basis for calculation of damages are the actual expenses of policyholder arising from production of the object of supply contract (planning expenses, services and work expenses, material expenses, other production expenses). All the amounts received by policyholder as advance and all the amounts received as purchase money in case of preserver sale (material, semi-products or products) are subtracted from the damages.

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