QUESTION
Dear Mr Old Man,
Please help me to solve the following problem:
L/C requires Insurance Certificate to be endorsed in blank.
The Insurance Certificate presented shows:
* This Insurance in event of assignment requires endorsement by the Insured/ Cover Holder (Party A)
* Not Transferable unless countersigned by the Insured
Party A countersigned, but it did not endorse. So is it a discrepancy or not?
I hope to receive your answer soon.
Best regards,
N.
———-
ANSWER
Hi,
When an insurance document requires a countersignature by the issuer, the assured or a named entity, e.g., This certificate is not valid unless countersigned by:___” , it must be countersigned by the required party to make the certificate valid.
According to ISBP 745, an insurance document is to be in the form required by the credit and, where necessary, be endorsed by the entity to whose order or in whose favour claims are payable. It is to be issued or endorsed so that the right to receive payment under it passes upon, or prior to, the release of the documents.
I come across some insurance policies which state “This Policy is not transferable unless countersigned by an authorized representative of this Company or the Assured AND ENDORSED ON THE SECOND PAGE” or “This Policy is not transferable unless countersigned by an authorized representative of this Company”, but I don’t think the signature that appears in the countersignature place is an endorsement.
So, you can raise the discrepancy “Insurance certificate not endorsed”
Kind regards,
Mr. Old Man
9836535100
March 22, 2017 at 1:21 am
We have received some documents under LC issued by us . We have raised few discrepancies relating to documents presented. The negotiating bank has after receiving the discrepancy message has resent the rectified documents . both the presentations are within the presentation period . Please confirm based on second presentation has the documents under lc to be constructed as Non discrepant presentation and we are bound to honour the claim .can we consider the same and waive off the discrepancies
mroldman
March 29, 2017 at 4:44 pm
The issuing bank must honour if the corrected documents are re-presented within the period for presentation and within the L/C validity.
TV RAJESH
March 31, 2017 at 12:46 am
What if the LC contains a clause that presentation should be in one set only.
mroldman
April 3, 2017 at 2:28 pm
So one set (I doubt you mean onet lot) should be presented to satisfy the requirement. Please note if documents are presented in 2 lots, at least the first lot must consists of all originals. If not, the issuing bank may wait for the second lot to check.