Goods in transit insurance

Goods export insurance policy under the supervision of Diooni company

This insurance policy is issued for those exporters who wish to insure a specific shipment sent to a specific buyer against the risk of non-payment of the export goods due to political and commercial risks in the destination country. Before the issuance of this insurance policy, the foreign buyer will be validated and the contract or letter of credit that is supposed to be covered will be reviewed by the debt company. The amount of the relevant insurance premium is calculated according to the political and commercial conditions of the buyer’s country, the method of payment, the credit conditions and the payment due date. The insurance premium must be paid in foreign currency to the fund account.

Remember; Note that the exporters of goods and services who themselves or one of the managers of their export company have a commercial card can use this insurance if they have mentioned it in the contract from the beginning. The exporting trading company and the destination legal entity have no responsibility in this regard.

Principles of insurance premium for Iranian goods

After receiving the validation report of the foreign buyer and determining the credit limit for that buyer, the following documents will be obtained from the exporter to file a case:

• The image of the sales contract or letter of credit.
• Image of the company’s statutes (applicant).
• Valid business card image.
• The image of the registration advertisement and its latest changes.
• A report on the applicant’s activity and export records.
• Applicant’s written request to issue an insurance policy (submit an official letter with company letterhead or complete the insurance policy application form in the forms section).

The duration of validation and determination of the credit limit for the buyer company or foreign bank in Iran takes less than one working week and 10 working days in the case of Iraq, United Arab Emirates and China. The duration of issuing the insurance policy is 5 working days.

How to apply for an export product insurance policy and learn about some possible risks

After receiving and completing the application form for issuing a short-term insurance policy, you can send your request through the e-mail address of Diooni company or by phone to our numbers. Also, to get more information, you can contact our phone number or social networks.

Find more information on how to contact Diooni Company from the (About Us) page.

Read more about the risks arising from the issuance of export goods insurance and transport insurance in Iran by Dioni company. Of course, keep in mind that all commercial companies will be exposed to these risks, but due to the experience and expertise of the Deboni team, we will make this path smoother for you, so that you can familiarize yourself with some warnings.

Political and commercial risks; Risks covered by total export circulation and export-specific insurance policies.

• Business risks; The buyer’s refusal to accept the exported goods or services.
• Failure to pay the price of goods or services on the due date
• Buyer’s lack of financial ability due to bankruptcy, bankruptcy or suspension.
• Political risks; The darkening of relations and the breaking of political relations with the buyer’s country, so that as a result, the exporter does not succeed in receiving his claims when they are due.
• Applying economic policies that block exporters’ claims.
• Application of policies related to import and currency restrictions in the buyer’s country.
• Expropriation of property from the buyer due to nationalization or confiscation of property in such a way that the exporter does not succeed in receiving his claims.
• Other factors beyond the control of the exporter and the buyer, which, as determined by the fund’s board of directors, cause the exporter’s claims not to be collected.

How is transportation insurance applied in Iran?

Transportation insurance in Iran is insurance in which the origin is Iran and the destination is a foreign country. Import, export and transit insurances are distinguished based on their origin and destination, and all exporters of goods will be detailed. The amount of the relevant insurance premium is calculated according to the political and commercial conditions of the buyer’s country, the payment method, the credit conditions and the payment due date. The insurance premium must be deposited into the fund account in the currency specified in the contract. In the transportation insurance contract, a legal relationship is created between the insurer and the insurer, which is the origin of the obligation. The insurer is obliged to compensate the insured under certain conditions in case of an accident. Transport insurance is one of the contracts that none of the parties have the right to cancel.

The necessity of transport insurance

To prevent loss, the exporter is forced to take out shipping insurance to protect his goods against physical damage. If the goods are transported by sea, this insurance is known as marine transportation insurance. In case of air transportation, the term air transportation insurance is used. However, in practice, transport insurance is used interchangeably with both terms and their provisions are clear.

Terms you need to know about shipping insurance:

• Insurer: An insurance company whose details are written in the insurance policy, and in exchange for receiving the insurance fee, is obligated to compensate for possible losses according to the conditions stated in the insurance policy.
• Insured: Insured is the natural or legal person mentioned in this policy who purchased the insurance and is obligated to pay its export insurance premium.
• Beneficiary: a person whose name is mentioned in the insurance policy based on the request of the insurer and to whom all or part of the damage is paid.
• Insurance fee: It is the amount specified in the insurance policy and the insurer is obliged to pay it to the insurer when the insurance policy is issued or according to the conditions specified in the insurance policy.
• Subject of insurance: The property listed in the specification table is called the subject of the insurance policy. Based on the insurer’s commitment, credit institutions and banks can more reliably provide financial facilities to importers or exporters and assume mutual obligations in front of merchants.

Types of export transportation insurance in Iran

Each of these insurance policies has its own terms and conditions that are suitable for a specific type of export product. It should be noted that all Iranian exporters who have a commercial card can use these insurance policies:

• Export credit insurance: This type of policy will help you if the customer cannot pay for the purchased goods. This super popular policy ensures that you don’t have to withhold profits from this trade for fear of failure. Export credit insurance provides an opportunity to prevent risky situations by providing information on the buyer’s credit history and general financial history report. As a result, the insurer undertakes to verify the buyer’s ability to pay.

• Marine insurance: Contrary to its name, marine insurance for export goods does not only cover cargoes that are transported by sea. This means that it provides coverage for the goods from the time they leave the supplier’s hands until they are delivered to the buyer.

• Political risk insurance: One of the types of insurance is export goods and it is for businessmen who deal with emerging economies. These countries are susceptible to the interference of government officials, which ultimately leads to confiscation of goods or non-payment for them. These governments unwittingly pass laws that can block normal channels of transferring money abroad or even confiscate business assets.

• Investment insurance policy: This insurance policy covers the principal and profit of the Iranian investor’s medium and long-term investment in the target countries.

• Insurance policy for the issuance of technical and engineering services

What role does the customs insurance policy play in goods clearance?

Customs and insurance in Iran have conditions that you will find a summary of: During the customs clearance process, at any moment, unfortunate events may cause the loss of the goods or cause financial damage to the goods. Therefore, preparing a customs insurance policy can be very effective in preventing these losses. There are different types of customs insurance policy that the insured person can be completely sure of the damages caused to the goods by preparing the desired customs insurance policy.

This insurance policy covers construction plans and projects implemented by Iranian contractors or engineering companies in other countries, as well as technical and engineering services provided by them abroad against political and commercial risks.In other words, if any of the risks covered by the Iranian exporter, technical and engineering services, fails to receive its claims from foreign employers, the Export Guarantee Fund will compensate the exporter for the damages based on the issued insurance policy.

In this article, we have mentioned all the points related to product export insurance and transportation insurance in Iran. Keep in mind that product export insurance is designed to prevent possible damages that may involve the exporters. Therefore, it is considered an important option for traders and exporters.