CONSTRUCTIONAL WORKS POLICY
To meet the special needs of Malaysian contractors who undertake construction engineering works for overseas employers involving a large element of services combined with supply of materials, the Specific Constructional Works Policy has been devised.
It has been drafted to apply to business done under "Conditions of Contract (international) for Works of Civil Engineering Construction", the standard form of contract adopted by the industry, but it can be used with other forms of contract. Cover is on the same basis as under the Specific Services Policy.
SPECIFIC CONTRACT POLICY (SHIPBUILDING)
The Specific Contract Policy (Shipbuilding) covers the ship builder against default of the buyer after the ship has been accepted by and delivered to the Buyer and Buyer failure to pay the ship within 6 months after due date of payment any installments of the contract price payable in accordance with the Contract after the ship has been accepted and delivered.
SPECIFIC LEASING POLICY
Full payout (financial) leases for all types of Malaysian goods (for example, contractor’s plant, equipment and machinery, etc) normally sold on terms of more than six months’ credit can be covered on an individual basis under the Specific Leasing Policy. The Policyholder can insure against loss in respect of sums due to be paid under the lease from the following causes: -
- insolvency of the lessee;
- lessee’s failure to pay amounts due under the lease within six months of due date of payment;
- transfer risk;
- war between the lessee’s country and Malaysia;
- war, revolution or civil disturbance in the lessee’s country.
In the event of breach or termination of the lease, EXIM Bank’s liability would apply only to sums due to be paid under the terms of the lease applying in those circumstances. Those aspects of cover outlines under “Risk Sharing”, “Premium Rates” and “Claims and Recoveries” as applying to the Specific Policy also applies to the Specific Leasing Policy.
Operational leases, where goods remain the property of the lesser, and which are not an alternative to sale of the goods, may be covered under the Specific Services Policy, as appropriate.
SPECIFIC SERVICES POLICY
This policy is intended to provide protection for firm carrying out services for principals overseas (as opposed to selling goods) and applies to all earnings under the individual service contract (Specific Services “Sums Due Policy”) or from the date of submission of invoices (Specific Services Rendered Policy).
Examples of services which may qualify for cover are: -
- supervision of constructional works and other projects
- ship repairs
- overseas project engineering consultancy
Those aspects of cover outlined under “Risk covered”, “Percentage of Cover” and “When Will Claims Be Paid” as applying to the Specific Policy also applies to Specific Services Policy.
The policy can also be endorsed to provide for various factors arising under different contracts, for example, inclusion of foreign goods or sales to associated companies. The policies are thus adaptable. |
Export Credit Insurance is the most effective way to protect exporters against losses arising from major export risks. Under its short term Comprehensive Policy, the insurance covers risks in connection with non-payment by the buyer for consecutive deliveries of goods and services, such as raw materials, consumer good and consumer durables which are traded on credit terms not exceeding 180 days.
