INVESTMENT

INSURANCE

As a rule, outward investment indicates complicated and

time consuming projects, during which investors are
exposed to risks quite different from the risks inherent in
the domestic market.
Theserisksare a sign of force majeure and are not under
control of the investor; nevertheless they can severely
jeopardize the existence and performance of the investment
(war, civil unrest, natural catastrophes, expropriation,
conversion restrictions etc.).

Advantagesof such an insurance policy are:

sharing of risks outside of investor's influential area,
facilitated entry into risky foreign markets,
a long-term obligation of SID Bank for insurance even in
case of worsened situation in the host country,
possibility of favourable long-term financing,
many Bank participation in preparation of investment
project and advising in the selection of instruments of
insurance against risks,
mediation in case of complications and disputes with the
host country of the investment,
repayment of claims
Forms of investment eligible for insurance:

equity:funds invested by investor in investment

company or other movable or immovable property, which
are expressed in monetary value and are the investor's
contribution into the investment company,
shareholder's loan:granted by a parent company to its
subsidiary/investor, with a 5-year or longer repayment
period, and
non-shareholder's loan:funds/loan granted by a
financial institution to investment company with a
majority ownership share of a Slovene investor.
Equity insurance and insurance of shareholder's loan
Equity insuranceis insurance of funds invested by a
Slovene investor into the project company abroad. This
can include founding of a new company (including joint
investments), purchase of an existing company or
increase in capital of a company. The investor can also
invest funds in the form of long-term loan (shareholder's
loan).

Insurance policyusually covers a "package" of risks, with

an option of custom-made choice of insurance coverage with
regard to type of risks as well as coverage level of each risk.
This is a 90% coverage, where 10% stands forown shareof
the investor (meaning that the policy holder to assumes the
risk amounting to 10% of sum insured).
Sum insuredis the amount of investment the investor wants
insured. Investor can include in insurance just a portion of
investment, as acurrent sum insured. The portion of
investment not included in the first period of insurance, or for
including future undistributed profits, can be included in the
insurance in the form ofreserved sum insured, for which the
policy holder pays only a portion of premium charged for the
current sum insured.
Insurance of non-shareholder's loan
When issuing a non-shareholder's loan, SID Bank insures
funds/loan granted by a financial institution to the
investment insurance company with a majority ownership
share of a Slovene investor.

Risks
The investors can insure their investments at SID Bank
against the followingnon-commercialrisks:
war and civil unrest,
expropriation and other forms of dispossession,
conversion and/or currency transfer restrictions,
termination of agreements by the host country of the
investment,
refusal of protection of the law,
natural catastrophes.
Financial institutions can insure their non-shareholder's loan
to Slovene investment company abroad also
againstcommercial risks of:
debtor's insolvency,
failure of repayment of a loan.
[source: http://www.sid.si/credit-and-investmentsinsurance/investment-insurance]

Thank You..!!