PRTC Policy Structure
Political Risk, Trade Credit and Political Violence (PRTC) policies cover expropriation, political violence, currency inconvertibility, and contract frustration. Lloyd's market wording varies and requires careful policy analysis.
Coverage disputes turn on whether the loss event constitutes a covered peril and whether exclusions apply.
Expropriation vs Regulation
The boundary between expropriation and legitimate regulation is the most contested area in political risk insurance. Experts analyse the host state's conduct, its cumulative effect, and whether the investor was targeted discriminatorily.
Political Violence and Currency Triggers
Political violence claims require analysis of whether events constitute war, insurrection, or politically motivated violence rather than ordinary crime. Currency claims require analysis of waiting period compliance and the cause of exchange restrictions.
Insurer vs Policyholder Experts
Each party typically appoints independent experts. Single joint experts may be appropriate for narrow coverage questions. Experts must understand both the policy wording and the political facts on the ground.