The Islamic Corporation for Insurance of Investments and Export Credits (ICIEC) has recently introduced a new documentary credit insurance scheme for exporters in its member countries.

The Documentary Credit Insurance Policy (DCIP) is one of two measures introduced by the corporation to boost exports from its member states.

L/C insurance

The DCIP protects commercial banks against the risk of non-payment of an import letter of credit (L/C) issued by an importer's bank.

The policy thus effectively protects the confirming bank against non-payment by the issuing bank.

Other support

The corporation has also recently launched a second new export credit insurance product. It is the Specific Transaction Policy, which is designed to insure single and medium-term export transactions, usually associated with project finance.

ICIEC, which is a 50 per cent owned subsidiary of the Islamic Development Bank (IDB), offers Islamic compatible insurance products for investment and export credit to 56 Organisation of the Islamic Conference (OIC) members and 55 IDB member states.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.