HDFC ERGO to cover political risks of firms operating abroad

Company has launched a political risk insurance policy, whereby companies operating internationally will be protected against arbitrary government actions and their investments protected. The policy will also safeguard businesses against unfavourable currency inconvertibility, the general insurer said in a statement.

The policy is designed to protect investors’ investments in overseas markets against unpredictable losses due to specified political perils such as expropriation, selective discrimination, forced abandonment, forced divestiture, political violence and currency inconvertibility, it added. Political risk insurance is available to investors, lenders, contractors, exporters, and other similar entities for safeguarding their foreign assets or investments.

According to the statement, the insurance will allow businesses to take advantage of expansion opportunities in emerging markets and also manage risks of existing investments.