Uncategorized INSURANCE AMOUNT By Mr Old Man Posted on February 9, 2014 2 min read 0 0 3,057 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION FROM SHAHED – CANADA Can a negotiating bank reject documents due to over insurance ? Shahed Toronto ——– COMMENTS FROM NGUYEN HUU DUC – VIETNAM. Hi, . See ISBP 745 para K12) which says when a credit does not indicate an amount to be insured, an insurance document is to be issued in the currency of the credit and, as a minimum, for the amount indicated under UCP 600 sub-article 28 (f) (ii). There is no maximum percentage of insurance coverage. . Also see R581 / TA111 which says where a credit does not specify a percentage, fixed amount or maximum amount for insurance cover, the insurance document may be expressed for any amount above the minimum of 110 per cent of the gross CIF or CIP value.. Kind regards, N.H.Duc ——— FROM RADEK – CZECH REPUBLIC Hi, Only if the credit expressly states that overinsurence is prohibited or that insured amount must be exactly fixed at a certain percentage. If the credit merely states “for 110 pct of CIF amount” or similar or if it is silent on the insurance cover, it only sets the bottom limit. In such case there is no discrepancy such as “overinsurance”. Radek ——- P/s: Q&A quoted from DCPro Discussion Forum
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?