OVERSEAS INVESTMENT INSURANCE SCHEMES

Since 1996, ECIO is offering Insurance Schemes against political risks concerning Investments overseas . It should be emphasized that ECIO, in reference to Investments, covers only political risks and not credit risks, with a minimum insurance period of 3 years . In other words, the investments' failure due to commercial reasoning will not be covered. Political risks covered by ECIO are, war (even civil), nationalization or expropriation, currency bans, as-well-as adverse legal or regulatory amendments (on the status quo of foreign investment protection) to such an extent that investments are no longer viable, and only for this reason.

What should be made clear is that ECIO covers direct investment for the founding of a new industrial or commercial entity abroad or the participation (equity investment) in an already existing company abroad. Insuring an "old" investment that occurred in previous years is not possible, however, it is possible to insure the increase of capital in an already existing investment. In the case that the new formed company is a joint venture between Greek and foreign investors, ECIO covers only the Greek participation.

As far as applying for this scheme , specific application forms must be filled out in which detailed information and specific documents need to be provided to ECIO regarding the company's Statute Law, feasibility studies related to the project, letters of guarantee from the foreign governments, etc. Following that, the MLT Underwriting Department evaluates the application and, after all parameters are taken into consideration, it submits the file and the proposal to the Board of Directors. If the application is successful, the applicant is contacted and notified about the Specific and General Terms of the Contract. Upon agreement, the Insurance Policy is signed by both parties. All General and Specific Terms are listed in the contract.

Last but not least, if any of the risks covered under the policy actually occur, the insured party must notify ECIO and provide documents that prove, beyond any doubt, no negligence in the part of the insured and of course the extent of the damage.