Dear Friends,
.
We advised an LC which stipulates Insurance policy to be issued to the order of issuing bank.
On the document presented, beneficiary is assured and beneficiary bank (our bank) is stated as "Mortgagee". No endorsement made by beneficiary.
As far as I know, "Mortgagee" is the real beneficiary of the insurance document in case of damage (Am I right?). If the mortgagee stated on the document, will the endorsement to any other party, have any use? Who must endorse the document, Beneficiary or our bank?
REgards
Endorsement of Insurance Policy
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Navi
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loankim
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Must be in the form as required...
Hi Navi,
According to ISBP 681, paragraph 179 : " an insurance doc must be in the form as required by the credit ". Referring to the answer of Mr Gary Collyer for same question: "I/P issued to oder of issuing bank , who should be the name of the issured ?" . The answer is " I/P should show the assured as the issuing bank. However, an insurance doc issued in favour of BEARER would also be accept .."
On the I/P presented , beneficiary is assured and No endorsement made by beneficiary, so that the right for claim is not transfered .
That's a discrepancy .
rgds,
According to ISBP 681, paragraph 179 : " an insurance doc must be in the form as required by the credit ". Referring to the answer of Mr Gary Collyer for same question: "I/P issued to oder of issuing bank , who should be the name of the issured ?" . The answer is " I/P should show the assured as the issuing bank. However, an insurance doc issued in favour of BEARER would also be accept .."
On the I/P presented , beneficiary is assured and No endorsement made by beneficiary, so that the right for claim is not transfered .
That's a discrepancy .
rgds,
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wongvv
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little doubt
Hi !
I have a little doubt on the part of answer "an insurance doc issued in favour of BEARER would also be accept ..". Since L/C does not require "endorsed in blank", I think "issued in favour of BEARER" would not be acceptable.
V.V.
I have a little doubt on the part of answer "an insurance doc issued in favour of BEARER would also be accept ..". Since L/C does not require "endorsed in blank", I think "issued in favour of BEARER" would not be acceptable.
V.V.
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loankim
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Accurately reflect...
Hi V.V. 
i have already accurately reflected the answer of Mr Gary Collyer . I think it's not right as According to ISBP 681, paragraph 179 but it's okie to apply in practice. If L/C requires the assured as the issuing Bank, it means the issuing bank takes the right to claim under that I/P and he can do too this action with
the I/P issued in favour of BEARER. So it's okie .
This is one of practices that are carried out by banks globally that are not encompassed within the ISBP pubblication.
Rgds,
i have already accurately reflected the answer of Mr Gary Collyer . I think it's not right as According to ISBP 681, paragraph 179 but it's okie to apply in practice. If L/C requires the assured as the issuing Bank, it means the issuing bank takes the right to claim under that I/P and he can do too this action with
the I/P issued in favour of BEARER. So it's okie .
This is one of practices that are carried out by banks globally that are not encompassed within the ISBP pubblication.
Rgds,