Companies domiciled and registered in Israel, or overseas companies controlled by Israeli companies.
Risks Covered Under the Policy:
Nationalization, confiscation, expropriation and similar discriminatory acts of the authorities of host countries by which the policyholder is unable to exercise his rights attached to his investment.
War, civil war, hostile acts, uprising, revolution, riots or similar events in the host country, which caused damage to the enterprise in which the policyholder has invested and prevent its orderly operation.
A political event, economic difficulty or the imposition of legislation in the host country which is out of the policyholder's control, and which prevents the transfer of money to Israel from the investment fund or the profits from the investment.
Pre-Conditions for Approval of Cover:
That the investment obtains the necessary approval of the host country.
Approval of the investment by the Bank of Israel (if required).
Form of Investment
The cover applies to new investments implemented through the transfer of money, equipment or knowledge, which provides the Israeli investor with shares in the overseas company which is being invested in. The cover applies as well to capital loans (shareholders' loans) with an agreed repayment date over one year, which give the Israeli investor the right to obtain shares in the company which is being invested in.
Types of Investment that can be Insured
The main criterion for providing cover for any investment is the benefit which could accrue to the Israeli economy and to the business development of the investing Israeli company. The following types of investment are eligible to be included in the proposed framework:
Industrial or agricultural enterprises that increase the production ability of the host country, whose products are designed for export or import substitution and which are based on the regular supply of raw materials, semi-finished products or knowledge from Israel.
Subsidiaries of Israeli exporting firms which function as a marketing pipeline for Israeli products in the host country.
Infrastructure enterprises in the fields of energy, communications or medicine, based on the export of equipment from Israel.
Industrial or agricultural enterprises based on the export of equipment and knowledge from Israel.
Tourism enterprises, such as hotels, that are designed to increase incoming tourism to the host country.
Banks that are likely to intensify commercial contact between Israel and the host country or a third country in the region.
In addition to the above, any business activity decided upon by ASHRA in conjunction with the Inter-Ministerial Committee, which for political or commercial reasons can make a contribution to the Israeli economy.
Percentage of Cover
The percentage cover will be up to 90% of the value of the investment.
Period of Cover
Up to 6 years with a possibility of renewal if necessary.
The premium will be up to 1.2% per annum of the amount of the investment covered. The size of the premium will be determined according to the economic situation of the host country and the extent of the proposed cover.