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INSCOM-ICBA Czechia – Coface– Force Majeure statement answer from 8.4.2020:

/I am generally satisfied with the answer, except of the sentence: ”In the event of damage reporting, we will assess the claim with respect to all relevant facts of Covid, the declaration of emergency and various government restrictions” where I will express my disappointment and will ask Coface for explanation or correction of the answer/

Dear Mr. Jandera,

Thank you for your inquiry and allow me to respond on behalf of the Director-General with our opinion below and the opinion in the Annex (see below).

COFACE is aware of the complexity of the situation in which our clients currently find themselves and provides all services without any problems.

• Our current insurance policies do not include direct exclusion of events such as Covid

• In the event of damage reporting, we will assess the claim with respect to all relevant facts of Covid, the declaration of emergency and various government restrictions,

Once again, we thank you for your active approach and for active communication, which we value and regard as very important. If possible, we would also like to ask you to share your view of current market developments.

In addition, thank you for the feedback you have given me.

Regards,

………

Head Of Commercial

(ANEX): EXCLUSIONS FROM INSURANCE COVERINGS RELATED TO KORONAVIR

COFACE has decided to respond to increasing inquiries from clients and brokers regarding coronavirus as a direct or indirect cause of damage and related exclusions from insurance coverage.

The assessment of whether the damage is covered by insurance always depends on the formulation of the particular insurance contract. In general, however, we can state that the fact that the customer does not have sufficient funds to pay its obligations as a result:

• illness of a large number of employees,

• Quarantines (persons, areas) declared by the government or local authorities; or

• closure of an establishment (shop, restaurant) as a result of government orders,

it does not in itself constitute grounds for excluding insurance cover.

………

CEO of Coface Czech & Slovakia

Dear All,

Some news from Coface actions in the Baltic, or better to say ”non action”. Since last week Coface Baltic almost stopped quoting on new business. It’s not only for some industries but entirely for every new request. They are concentrated on credit limit reduction/withdrawal and renewals. When it come to limit management their approach is not a brainer, they just cancel or significantly reduce all limits with DRA 4 and 5 (1-3 is already not covered). Buyers with DRA 6-8 are under reduction as well.

I would be very happy if you can share situation with Coface in your countries.

INSCOM-ICBA Czechia – Coface– Force Majeure statement

Dear ICBA colleagues,

today I have send an official request to the Board members, or CEO of the insurer (below see Google translation):

Hello Mrs. …….,

Thank you for your ongoing information from your insurance company today.

The activity of our brokerage company INSCOM-ICBA is not limited in any area, on the contrary I perceive greater intensity and efficiency of our work. Together with our common customers, we continuously deal mainly with coverage for individual customers and mediate the flow of information in both directions (customer – broker – insurance company).

In addition to “standard” service work such as Tendering, Insurance Contract Audits, Customer Limits, and Claims, customers are also approaching us with an increased number of inquiries toward their insurance contract obligations.

We manage most of them without any problems. With one that we cannot be responsible for a broker, I now officially contact you:

”Does your insurance company look at the Coronavir pandemic and related government measures as a natural disaster, force majeure, or whether you include them under another lockout?” I mean the contractual documentation currently in use and the situation from 12/03/2020 to date, ie 8.4. 2020.

It is clear to us and the customer that he is also obliged to observe the obligations arising from the contractual documentation, ie to proceed with business with his customers with the care of a proper manager.

Thank you in advance for your comments, which we will provide to our common customers on request.

Sincerely

Tomáš Jandera, Managing Director / CEO