Investment insurance (1)

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Investment Insurance
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As a rule, outward investment indicates
complicated and time consuming projects, during
which investors are exposed to risks quite
different from the risks inherent in the domestic
market. These risks are a sign of force majeure
and are not under control of the investor
nevertheless they can severely jeopardize the
existence and performance of the investment (war,
civil unrest, natural catastrophes,
expropriation, conversion restrictions etc.).
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• Advantages of such an insurance policy are
• sharing of risks outside of investor's
  influential area,
• facilitated entry into risky foreign markets,
• a long-term obligation of SID Bank for insurance
  even in case of worsened situation in the host
  country,
• possibility of favourable long-term financing,
• many Bank participation in preparation of
  investment project and advising in the selection
  of instruments of insurance against risks,
• mediation in case of complications and disputes
  with the host country of the investment,
• repayment of claims
• Forms of investment eligible for insurance

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• equity funds invested by investor in investment
  company or other movable or immovable property,
  which are expressed in monetary value and are the
  investor's contribution into the investment
  company,
• shareholder's loan granted by a parent company
  to its subsidiary/investor, with a 5-year or
  longer repayment period, and
• non-shareholder's loan funds/loan granted by a
  financial institution to investment company with
  a majority ownership share of a Slovene investor.
• Equity insurance and insurance of shareholder's
  loan
• Equity insurance is insurance of funds invested
  by a Slovene investor into the project company
  abroad. This can include founding of a new
  company (including joint investments), purchase
  of an existing company or increase in capital of
  a company. The investor can also invest funds in
  the form of long-term loan (shareholder's loan).

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• Insurance policy usually covers a "package" of
  risks, with an option of custom-made choice of
  insurance coverage with regard to type of risks
  as well as coverage level of each risk. This is a
  90 coverage, where 10 stands for own share of
  the investor (meaning that the policy holder to
  assumes the risk amounting to 10 of sum
  insured).
• Sum insured is the amount of investment the
  investor wants insured. Investor can include in
  insurance just a portion of investment, as
  a current sum insured. The portion of investment
  not included in the first period of insurance, or
  for including future undistributed profits, can
  be included in the insurance in the form
  of reserved sum insured, for which the policy
  holder pays only a portion of premium charged for
  the current sum insured.
• Insurance of non-shareholder's loan
• When issuing a non-shareholder's loan, SID Bank
  insures funds/loan granted by a financial
  institution to the investment insurance company
  with a majority ownership share of a Slovene
  investor.

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• Risks
• The investors can insure their investments at SID
  Bank against the following non-commercial risks
• war and civil unrest,
• expropriation and other forms of dispossession,
• conversion and/or currency transfer restrictions,
• termination of agreements by the host country of
  the investment,
• refusal of protection of the law,
• natural catastrophes.
• Financial institutions can insure their
  non-shareholder's loan to Slovene investment
  company abroad also against commercial risks of
• debtor's insolvency,
• failure of repayment of a loan.
• source http//www.sid.si/credit-and-investments-
  insurance/investment-insurance

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Thank You..!!