claim payable in the currency of the draft
Posted: Sun Jun 28, 2009 7:22 pm
This case was published in the last DC Insight
My question is if the insurance policy in fact quoted only “claim, if any, payable in the currency of the draft”, will it be acceptable.Required documents:
1. signed commercial invoice in duplicate;
2. packing list in duplicate;
3. full set of clean on board ocean bills of lading consigned to and notify applicant with full address marked freight to collect;
4. shipping authorization issued and signed by the applicant authorizing shipment;
5. beneficiary's certificate certifying that one set of documents has been sent to the applicant by courier service immediately after shipment;
6. insurance policy in duplicate for 110% of CIF value covering all risks and war risk with claim payable, if any, at the destination in the currency of the draft.
Documents were refused by the issuing bank with the following discrepancies:
- shipping authorization not manually signed;
- insurance policy not stated "claim, if any, payable in the currency of the draft".
We immediately disputed the discrepancies, which were groundless. We also responded with the following:
- The L/C did not stipulate that the shipping authorization must be signed manually. The signature appears to be signed in a digital format.
- The insurance policy did indicate the claim, if any, to be payable in the currency of the policy, i.e., US dollars.