Loss prevention and mitigation
The Federal Government provides support to the policyholders to implement appropriate measures for the prevention and mitigation of losses, so that at a very early stage losses due to commercial or political events can be averted as son as there are first signs that they may be impending.
In the case of political events of loss, activities to prevent losses can be initiated by the Federal Government at diplomatic level to secure the continued existence of the raw material project.
When will a loss be indemnified
The prerequisite for a claims payment is that a legally valid and due receivable based on a covered risk cannot be recovered. In principle, the policyholder must retain for his own account 10 % of every event of loss. Provided that all necessary documents are handed in, the loss will be calculated within one month, with the claims payment being made within five banking days following the loss assessment.
Generally, protracted defaults due to political reasons will be settled within the conclusion of a rescheduling agreement between the Federal Government and the country of the debtor. The aforementioned protracted defaults will be accepted as political events of loss at the latest upon the conclusion of a multilateral rescheduling agreement.
Do you have any further questions regarding losses and possible indemnification payments?
Please do not hesitate to contact our specialists who will be pleased to assist you with any questions regarding losses and indemnification under an Untied Loan Guarantee at any time.