Advisory & Claims
ADVISORY & CLAIMS
Advisory & Claims
Claims payments are the ultimate reason that insurance is bought.
Navigating the claim process can be complicated and lengthy and does require expert assistance.
PRI Underwriters actually have a very good record on claims payments when the claim is handled properly.
Meyseys offers expert advice and assistance to Insureds who are pursuing a political risks insurance claim.
In February 2018 Meyseys was instructed by Kingsgate Consolidated Limited an Australian mining company who owned and operated the Chatree mine in Thailand.
In 2016 Kingsgate lost the ability to operate the Chatree mine due to actions of the Thai Government.
Kingsgate had been in legal proceedings with PRI Underwriters for 3 years.
Meyseys
advised that a local arbitration in Sydney would be in Kingsgate’s best
interests.
Meyseys spent 10 days before the arbitration working with Kingsgate and their advisors in Sydney.
At the arbitration in March
2019 in Sydney, the arbitrator found in Kingsgate’s favour and Kingsgate
were awarded over US$55m.
The maximum tenor for PRI available from the private insurance market is currently 15 years (with greater liquidity up to 10 years). CRI is usually provided for tenors of no more than 5 years, although some insurers may consider providing cover for 7 years or longer.
PRI is generally available for all countries provided they are not subject to sanctions (whether by the U.N., the U.S.A., the E.U. or the national government of the relevant insurer); insurance premiums will reflect the relevant sovereign risk, the tenor of the policy, the record of previous claims and recoveries in the relevant country, the nature of the underlying asset / project, and the current use of the insurer’s available country limits.
There are many insurance companies and Lloyds syndicates that underwrite PRI and CRI policies; those with a Standard & Poor's credit rating of A+ or better (or equivalent) are usually acceptable for policies with long tenors, and a rating of A may be acceptable for tenors of up to 3 years.
