INSURANCE STATING WITHOUT ANY FRANCHIRE

[EMILYTRAN]

HI,

May we ask for your assistance on this issue.

We have negotiated the documents presented under the LC issued by BYLALBBX under which the insurance policy is required as follows:

Insurance Policy in duplicate issued to the order of beneficiary and blank endorsed covering ICC A and without any franchire to be mentioned on the policy

The insurance policy was made as per LC's stipulation. However It does not state any cover subject to franchire and also not mention any relative wordings such as "without any franchire"

However the issuing bank refused our insurance due to the discrepancy "Insurance policy does not mention without any franchire" as they mean the wordings "withour any franchire" must be mentioned on the insurance policy.

Please be kind to consult us on this matter as we do not agree with such disrecpancy interpretation of issuing bank.

Regards,
ThuyPTB

[DanielD]

IB obviouls wrong. It is what we call in French "l'esprit et la lettre". What matters is the fact that the insurance documents is not subject to a franchise.
Daniel

[GlennRansier_]

It appears that the LC requested that the insurance not be subject to a franchise. On the portions of the document that banks are responsible for reviewing, the insurance document did not indicate that it was subject to a franchise. The LC does not appear to mandate that the phrase "not subject to a franchise" must be quoted on the insurance document. I do not see a discrepancy in this instance.

[EMILYTRAN]

Highly appreciate your comments.
My fondest Regards,
ThuyPTB

[EMILYTRAN]

Hi,

I am delighted to come back this issue for your kind comments.

Basing on the conclusion as to the anti UCP600 action of the issuing bank by rejection of our documents, we have claimed back the issuing bank for refunding the dicsrepancy, wire cost that have been deducted upon paid in addtion to the delayed payment interest. However, silence is what the issuing bank's feedbank towards our continuing tracing.

In this case we think we can not keep silence as theirs, as such we need your favorable instruction and supporting as to the sollution for prudent banks.

Thanks and Best regards,
ThuyPTB

[HOANGTHIANHTHU_invalid]

Hi,

I see from my own experience that issuing banks often ignore requests for refund of discrepancy fee charged though the alleged discrepancies are not acceptable. However, repeated requests for refund of discrepancy fee can help prevent them from raising similar discrepancies in the future.

Regards,
N.H.Duc