When trading with international partners or investing in operations abroad, your activities become subject to political risk. In a world where geopolitical environments can be as unpredictable as they are devastating, it makes sense now, more than ever, to obtain insurance to guard against political and financial risks with Masumali Meghji Insurance Brokers Ltd.
Companies normally purchase Political Risk Insurance to protect themselves against specific losses that could negatively impact their performance.
Political Risk Insurance covers short and medium term trade as well as projects and investments. The insurance protects against government action, inaction, or interference that would result in financial loss. It offers protection to the investor, supplier or lender against various risks such as:
- Transfer Restriction
- Civil Disturbance or Civil Commotion
- Arbitral Award Default
This kind of political risk insurance is purchased by exporters, lenders, investors and contractors with inventories, equipment or other assets located in foreign countries. It protects against confiscation, expropriation, nationalisation and other foreign government actions which would deprive you of your rights of ownership or control of your assets without appropriate compensation in a freely convertible currency.
Related political risks include forced abandonment, selective discrimination, and “creeping expropriation” (a series of individual government actions which, taken together, effectively result in expropriation). Political Risk Insurance can also cover re-investment of future retained earnings or non-transfer of dividends, royalties or other funds following the sale of an asset or disposal of an investment.
Masumali Meghji Insurance Brokers Ltd is one of the largest independent Insurance Brokers in the Coastal Province, and has been serving the community for 30 years.