Political Risk Insurance

HC Deb 30 January 2004 vol 417 cc592-3W

Malcolm Bruce

To ask the Secretary of State for Trade and Industry what the length of time is within which the Export Credits Guarantee Department must appraise whether a claim will be paid on political risk insurance. [151493]

Mr. Mike O'Brien

Under the terms of ECGD's insurance products, in order for ECGD to assess whether a claim will or will not be paid, evidence must be provided by the Insured to demonstrate to ECGD's satisfaction that an insured loss has occurred. There is no fixed time limit on this process although the Insured must notify its intention to make a claim within a set period, which is three months for Overseas Investment Insurance Policy and 12 months for Export Insurance Policy and Bond Insurance Policy.

Under its financing products, ECGD will normally pay claims including interest to the financing banks following notification of default. Claims are normally paid three months after the due date of payment of the defaulted amount.