Insurance for Foreign Direct Investments
The acquisition of a foreign enterprise, the initiation of cross-border manufacturing operations or the establishment of an international distribution network constitute highly prevalent strategies for securing novel destination markets and expanding commercial sales volumes. Concurrently, such strategic endeavours entail inherent exposures to unexpected developments within the host jurisdiction where the investment is executed. The Insurance for Foreign Direct Investments provided by KUKE immunises commercial enterprises against the financial consequences derived from such adverse events.
The scope of this underwriting protection shields the capital expenditures committed by Polish investors against financial losses precipitated by events classified as political risks or force majeure within the host country, explicitly encompassing:
- Sovereign or regulatory interventions that effectively obstruct the execution or continuity of the investment;
- The declaration of a generalised payment moratorium by host authorities;
- Regulatory restrictions on international commerce manifested through sweeping export prohibitions;
- Administrative measures that impede or block the repatriation and transfer of funds, such as dividends;
- The absolute deprivation or expropriation of the investor's capacity to exercise rights contractually bound to the investment;
- Acts of war, revolutions, civil unrest, protracted mass labour strikes, or catastrophic natural phenomena including earthquakes, volcanic eruptions, typhoons, floods and large-scale fires of disastrous proportions.
Subject Matter of the Insurance Policy
Equity contributions designated for the settlement of share capital accounts, dynamically adjusted in proportion to contractually executed reductions or appreciations of the equity stake. This classification concurrently encompasses the ring-fenced capital allocated to foreign branches or representative offices, alongside supplementary capital contributions adjusted for any subsequent capital repatriations.
Receivables and debt claims held by a partner or shareholder arising from loan facilities, provided that the underlying objective and covenants of said credit establish that the Insured exercises effective managerial or strategic influence over the foreign enterprise. The scope of the receivable contractually incorporates legally enforceable, accrued interest.
Undistributed net profits or accumulated losses, alongside capital reserves generated directly from generated and unallocated net earnings.
Capital expenditures incurred for the acquisition of title or alternative real property rights, alongside supplementary fixed tangible assets situated within the host jurisdiction of the investment and utilised for the conduct of international business operations.
Application Path
- Complete the designated communication and intake form.
- Await subsequent formal communication and administrative directives from the authorised representatives of KUKE.