Cover for the part of a loan not secured by collateral
The bank is both the policyholder and the beneficiary. If the borrower defaults, the insurer covers the portion not secured by collateral on first demand. The premium is paid by the borrower: rates from 0.2%.
The policy covers the bank's loss from the borrower's default on the credit agreement, within the sum insured.
The loan amount advanced to the borrower under the credit agreement and not repaid within the agreed period.
Interest accrued on the principal and all interest accrued for the period of overdue indebtedness.
Fees, default interest and penalties charged to the borrower under the terms of the credit agreement.
All financial costs the bank incurred in advancing the loan, provided they are included in the sum insured.
The sum insured is derived from your credit agreement
Every notification is reviewed against the credit agreement, the documents evidencing the debt and the information on the borrower.
The borrower did not repay the principal, the accrued interest and other payments under the credit agreement, and the bank suffered a loss.
Thirty calendar days have passed since the payment date in the repayment schedule; the following day is treated as the date of loss.
The bank notified the insurer in writing and attached the claim, the policy, the borrower's balance sheet and evidence of the debt.
The contract covers the risk that the borrower fails to perform under the credit agreement. Compensation is paid within the sum insured.
The premium is paid by the borrower, and the bank is named as the beneficiary. The pledged asset itself is not covered — for that there is collateral property insurance.
The borrower failed to make a payment under the repayment schedule: principal, interest or other charges.
Thirty calendar days are counted from the payment date. The day following their expiry is recognised as the date of loss.
The bank notifies the insurer in writing and submits the claim, the policy, the borrower's balance sheet and evidence of the debt.
The insurer reviews the documents within 5 working days, draws up the report and transfers the compensation within 5 banking days.
The contract is signed by the insurer, the bank and the borrower: one party pays, another is protected.
The bank — policyholder and beneficiary. Enters into the contract and receives the compensation. It is named as the beneficiary in the policy.
The borrower — payer of the premium. Pays the premium and carries its own obligations under the insurance contract.
The insurer — EUROASIA Insurance. Covers the uncollateralised part on first demand, the rest once the pledged assets are sold.
Joint and several liability. The insurer and the borrower are jointly and severally liable to the bank.
Transfer of the right of claim. After the payment the claim against the borrower passes to the insurer.
Recoveries above the payment. From any recoveries the insurer takes the payment and costs; the rest stays with the bank.
The contract runs for the term of the credit agreement. Amendments and termination require a written agreement of all three parties.
The premium is a percentage of the sum insured for the whole loan term, not per year: the longer the loan, the higher the rate.
Working capital facilities, short purpose tranches and credit lines within a single year.
The most common term in corporate lending: the base rate under the contract where the bank is the policyholder is 2.4%.
Long investment and project deals: the longer the horizon, the higher the rate.
The figures are indicative and do not constitute an offer. A specialist calculates the exact sum insured and rate from the credit agreement and the borrower's details.
the principal under the credit agreement that the borrower failed to repay on time
interest accrued on the principal and interest for the period of overdue indebtedness
fees, default interest and penalties charged under the credit agreement
the bank's financial costs connected with advancing the loan
The uncollateralised part is paid on first demand, the rest once the pledged assets are sold. The payment never exceeds the sum insured.
the borrower or the bank supplied inaccurate or false information that makes it impossible to assess the risk and the size of the loss
the terms of the credit agreement were breached by deliberate acts or omissions of the bank
unlawful or fraudulent acts of the bank have been established in the manner prescribed by law
the loan term was extended without written notice to the insurer
the borrower failed to pay the premium in the amount and by the date set out in the contract
the loan proceeds were used by the borrower for purposes other than those agreed
the bank seeks reimbursement of its own court costs incurred in defending its interests
The full list of grounds for declining a claim is set by the contract and the legislation.
The policy answers for the borrower's ability to pay, not for the fate of any asset. The rest is insured separately.
Fire, natural disaster, flooding or theft that costs the bank the pledged asset.
The borrower's buildings, premises, machinery and stock are insured as business property, not through credit risk.
Damage the borrower's operations cause to outside people and companies is covered by a general third-party liability policy.
Cargo in transit, contractor liability, the borrower's own staff — each risk has its own contract in the range.
The basis is the credit agreement and the borrower's details. It forms an annex to the insurance contract.
The agreement between the bank and the borrower: it sets the term, the repayment schedule and the composition of the obligations.
The name and details of a corporate borrower, or the personal details of an individual borrower.
The pledge agreement, if one has been concluded, and the valuation of the pledged assets: what the collateral does not cover is what gets insured.
The size of the unsecured portion: principal, interest, fees, default interest, penalties and loan origination costs.
The term of the credit agreement and the repayment schedule — they drive the insurance period and the premium rate.
If the loan is advanced in a foreign currency, the sum insured is stated both in that currency and in soum.
The contract is tripartite: it is signed by the insurer, by the bank as the policyholder and by the borrower as the payer of the premium.
The bank submits the credit agreement and the details of the borrower and of the security. The insurer assesses the risk and quotes a rate.
The contract is signed by the insurer, the bank and the borrower. The bank is named as the beneficiary in the policy.
The borrower transfers the premium in a single instalment within 30 banking days of the contract being signed.
The policy is issued within 2 days of the premium reaching the insurer's account and runs for the term of the credit agreement.
It is voluntary insurance under class 14, credit insurance. The insured event is a loss suffered by the bank because the borrower failed to perform under the credit agreement: failure to repay the principal and to pay the accrued interest, including interest on overdue indebtedness. The policy covers the part of the loan that is not secured by collateral or by any other form of security.
The bank is both the policyholder and the beneficiary: it receives the compensation and is named as the beneficiary in the policy. The premium, however, is paid by the borrower. The contract is tripartite — signed by the insurer, the bank and the borrower — and the borrower carries its own obligations under it.
The principal under the credit agreement, the interest accrued on it, all interest for the period of overdue indebtedness, fees, default interest and penalties, as well as the bank's financial costs connected with advancing the loan. The sum insured is the maximum extent of the insurer's obligations: the payment cannot exceed it.
It is the 30 calendar days following the date on which the borrower was due to repay the loan funds under the schedule in the credit agreement. The day after the waiting period expires is treated as the date of loss, and it is from that date that the bank's approach to the insurer is counted.
The premium is a percentage of the sum insured for the whole loan term, not per year. As a guide: up to a year — from 0.2%, one to three years — 2–3%, over three years — from 3%. The base rate where the bank is the policyholder is 2.4%. Indicative figures, not an offer.
The portion not secured by collateral is paid on the bank's first demand. The remaining debt is paid once the pledged assets have been sold — in both cases within the sum insured stated in the policy.
If the information supplied is inaccurate and the risk cannot be assessed; if the credit terms were breached deliberately; if unlawful or fraudulent acts of the bank are established by law; if the loan term was extended without notice to the insurer; if the premium was not paid; if the proceeds were misused; if the bank seeks its own court costs.
The right of claim against the borrower passes to the insurer within the amount paid. The bank must hand over all the necessary documents and assist with recovery. If the bank receives money from any source after the payment, it is split as follows: the insurer takes the compensation it paid and the related costs, and the remainder stays in the bank's account.
The insurer reviews the documents submitted and decides within 5 working days whether to recognise the insured event. If it is recognised, a report is drawn up and the compensation is transferred to the bank within 5 banking days of the report being signed. If the insurer declines, it must inform the bank no later than 3 working days, setting out the reasons for the refusal.
The contract takes effect when the parties sign it and runs for the term of the credit agreement. The insurer's obligations begin once the premium has reached its account in full and continue until the end of the period stated in the policy. The term can be extended by an addendum with an additional premium.
The insurer's liability is set in proportion to the premium actually paid. If the obligations are discharged early, the premium is recalculated for the period the contract was in force. On early termination it is not refunded, per the Civil Code.
If the loan funds were advanced in a foreign currency, the sum insured is stated both in that currency and in soum. Payments under the sum insured are made in the national currency — in soum, at the official rate of the Central Bank of the Republic of Uzbekistan on the day the compensation is paid.
Tell us about the deal — a specialist will help calculate the sum insured and the rate.
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