Hi experts,
Please help me to understand the below ISBP clause.
K21. Insured party and endorsement
When a credit is silent as to the insured party, an insurance document is not to evidence that claims are payable to the order of, or in favour of, the beneficiary or any entity other than the issuing bank or applicant, unless it is endorsed by the beneficiary or that entity in blank or in favour of the issuing bank or applicant.
Regards
Dinesh
When A Credit Is Silent As To The Insured Party?
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dinesh2476
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Navi
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insured party of insurance documents
Hi,
To serve its purpose, an insurance policy must be issued or endorsed in favour of applicant or issuing bank or blanked endorsed (so that the right to claim must pass to the holder of the document after presentation i.e. issuing bank or applicant).
To serve its purpose, an insurance policy must be issued or endorsed in favour of applicant or issuing bank or blanked endorsed (so that the right to claim must pass to the holder of the document after presentation i.e. issuing bank or applicant).
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shafi865
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ISBP 745 Paragraph K21
Hi Dinesh !
ISBP 745 Paragraph K21 are to be construed as ---
If the credit does mention any information about the Insured Party, then the insurance document may indicate the insured party as
1) Applicant of the credit or Issuing Bank
or
2) Beneficiary or any entity. But then it is required to endorsed by the beneficiary or that entity in blank or in favour of the issuing bank or applicant.
Hope this will help you to understand.
Regards,
Shafique
ISBP 745 Paragraph K21 are to be construed as ---
If the credit does mention any information about the Insured Party, then the insurance document may indicate the insured party as
1) Applicant of the credit or Issuing Bank
or
2) Beneficiary or any entity. But then it is required to endorsed by the beneficiary or that entity in blank or in favour of the issuing bank or applicant.
Hope this will help you to understand.
Regards,
Shafique