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Confirmed Documentary Credit Insurance Policy

The policy insures banks that add confirmation to an irrevocable letters of credit against the risks of default payment of the LC issuing bank. The concerned LC has to be related to export of goods or services of Arab origin to any part of the world, or import of strategic goods or equipment of non-Arab origin by an Arab county.
 
This service helps the banks expanding their geographical reach as well as enhancing their business volumes through secured means, hence obtaining capital relief, given Dhaman’s “AA” rating.
 
Dhaman compensates the confirming bank up-to 90% of the insured confirmed LC value (or at 100% of insured amount under the LC).
 
Covered Risks

  • Commercial risks:
    – Bankruptcy of the issuing bank
    – Protracted default of the issuing bank
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  • Political risks:
    – Transfer restrictions
    – War and civil disturbances
    – Confiscation, Expropriation and Nationalization
    – Public and governmental Entities default of payment

 

 
Confirmed Documentary Credit Insurance application (PDF)
 

Confirmed Documentary Credit Insurance brochure (PDF)