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INSCOM-ICBA Czechia – CREDENDO – Force Majeure statement

answer from 8.4.2020:

Hello Tomáš,

Given the fact that we have already discussed our cover, I understand that there is a need to have something tangible in hand. Therefore, upon your request, I send an opinion to Credendo on the coverage of existing contracts.

Good evening

………………….

Head of Sales

(APENDIX)

Coverage and the pandemic CoV-2

Due to the continuing emergency that has been declared due to the SARS CoV-2 and the government resolutions issued to prevent it, we provide the following statement relating to the impact of a pandemic on an insurance.

Am I covered for the risk of non-payment due to the Covid-19 virus?

Yes, such situation would be considered as a protracted default which is covered by CREDIRECT.

Am I covered for the risk of non-payment resulting directly or indirectly from government action or decision?

This is the similar situation like the above mentioned. The non-payment caused by the government action or decision falls under the protracted default which is covered.

Is the non-payment due to the pandemic CoV-2 excluded from the coverage CREDIRECT?

No, it is not excluded. The CREDIRECT contractual documentation valid up to date does not exclude from the coverage the pandemic CoV – 2 neither any act of a government issued in connection with it.

In addition, it must be taken into the account that all duties of the insured remains in force, especially the duty of the insured (set in General Insurance conditions) to act with due diligence that inter alia means to carry out all transactions from which insured receivables result for the insured with the same extent of care and diligence that is exercised while negotiating uninsured transactions and to take any and all steps and all purposeful measures that may be taken to prevent the occurrence of loss or to reduce the threatening amount thereof.

Is the pandemic CoV-2 and related act of a government a political risk and is it necessary to arrange any supplementary insurance?

Due to the fact that CREDIRECT recently does not distinguish between political risks and commercial risks and covers both under protracted default or insolvency risks it is not necessary to arrange any supplementary insurance.

Note:

This document and standpoint is not for general distribution, this is am internal document that should navigate employees what shall be given as answer to our clients or brokers, if they ask, so please do not distribute it generally to all clients or brokers, but use that information as answer for questions raised.

If you receive questions which is substantially different from above mentioned it is recommended to consult the answer with Legal dept.

The aforesaid questions and answers are in CZ and EN language but means the same.

INSCOM-ICBA Czechia – CREDENDO – 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 Mr. …….,

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