Letter
of credit cover policy
This
policy is tailor made for the banking sector where
it covers non payment of unconfirmed letter of credit
issued by foreign banks .
The negotiating bank is the beneficiary of the policy
which cover the bankruptcy of the issuing bank and
his ability to pay , also the policy covers the political
risk that may prevent payment of the issuing bank
.
This policy is one of the alternatives to bank confirmation
where the indemnity payment reaches 95% of the loss
incurred by the issuing bank risks and 100% for the
loss arising from political risk .
