Investment Insurance - Export Bill Insurance
This insurance covers losses suffered by a commercial bank that purchases documentary bills of exchange drawn without L/C in order to collect export proceeds.
The said losses may be incurred when the relevant bank is unable to collect the money owing to nonpayment of the bill caused by (i) war, revolution, prohibition of foreign currency conversion into other currency, suspension of remittance, or force majeure such as natural disaster, etc. or (ii) bankruptcy of a foreign importer. The insurance helps to relieve concerns the bank may have when it purchases bills without L/C.
