Claims Payable
EXIM Bank will compensate you as follows: -
- For Transfer Restriction
Up to 6 months after attempt to convert or transfer local currency
- For Expropriation
Up to 4 months after the expiry of 12 months from the onset of the expropriation action.
- For War and Civil Disturbance
Up to 4 months upon proof of damage to physical assets or up to 4 months from the expiry 12 months after the project enterprise has been put out of operation.
- For Breach of Contract
At least 2 years must elapse from the initiation of a legal proceeding by you or a final decision by the judicial or arbitral forum, as the case maybe.
- Recoveries
In general, recoveries received by EXIM Bank in excess of the amount or claims paid and expenses incurred shall be refunded to you.
Cost Of Coverage
Premium
A premium is charged annually on the Current Amount and the Standby Amount on a case to case basis depending on the project risk profile and country risk.
Handling fee
A one-time handling fee of up to RM1, 000.00 is charged at the time of submitting the Definitive Application.
Minimum Premium
When you terminate your guarantee within a period of 3 years, a minimum premium is payable.
How To Apply For Coverage?
Preliminary Application for OII
To apply, you need to submit a Preliminary Application before the investment is made or irrevocably committed. This is to enable EXIM Bank to determine that your investment is eligible for cover. There is no cost involved in submitting the preliminary application. Upon qualification, a Letter of Registration, together with a Definitive Application will be sent to you. The Letter of Registration is not a commitment for EXIM Bank to issue a Guarantee to you.
Definitive Application for OII
When your investment and financing plans are firmed up, you should promptly complete and return to EXIM Bank the Definitive Application along with all the relevant documents (e.g. Joint venture contract, feasibility study, etc) together with your payment of RM1,000.00 for the handling fee.
Cooperation With Other Political Risk Insurers
EXIM Bank is willing to cooperate with other international political risk insurers such as Multilateral Investment Guarantee Agency (MIGA) or export credit agencies by entering into co-insurance and reinsurance arrangements for joint coverage of eligible investment projects. |
The trend of investing, especially in the emerging market economies has been gaining momentum among Malaysian entrepreneurs. As a private investor, you are capable of evaluating the commercial aspects of doing business overseas. However, you may be hesitant to commit your capital to a project especially if you perceive the long term political stability in the host country to be uncertain. 
