Non-repossession and political risk insurance

Covering a Lessor/Lender against the inability to obtain repossession of an aircraft following default by the lessee. Coverage disengages country risk and allows for Transfer Risk qualification under BIS rules.

The coverage underwrites against the adverse interference in the valid repossession of the insured equipment, by the host government or judiciary. Coverage insures against any new law, which may be introduced in the host country during the lease term and accepts those confiscatory laws which may exist at the inception of the lease.
The policy can be extended to address any judicial delay and can be drafted to provide very short waiting periods so that underwriters will pay pure deprivation losses soon after the cause of loss.

Coverage further protects a lessor from the application of United Nations sanctions on the host country of a lessee. Sanctions are used increasingly and their application can create a situation where a lessor is deprived of an aircraft by the actions of the Security Council rather than the host country. AMS were the first broker to obtain coverage at no additional cost for this increasingly evident peril.

Policies can be arranged on a non-cancellable basis for any periods required by the lessor up to 10 years.

For more information please contact broker@amspitman.com