This insurance policy is issued for the purpose of covering the political and commercial risks which jeopardize the Iranian contractors' receivables from foreign employers upon the request of the Iranian contractor from the Fund. The basis for issuing this insurance policy is to verify the credit rating and credit ceiling of the foreign employer/foreign bank who acts as the medium for payment the sales invoices.
The insurance policy is issued with the nominal value of the entire contract, but in compliance with the credit limit of the foreign employer and after receiving an advance premium which is normally 10% of the actual premium to be charged until the end of the project. In proportion to the progress of the project and at the same time as the contractor presents the invoices and engineering progress statements to the employer the policy holder is required to simultaneously declare them to the fund for which they are obliged to pay the relevant insurance premium, after which the fund issues inclusion letters for the insurance of the contractor's receivables from the foreign employer. In this way that part of the receivables for which n inclusion letter is issued by the Fund is under EGFI’s cover.
What Risks are under Techno-engineering specific insurance policy cover?
A) Commercial risks:

• The buyer's refusal to accept the exported goods or services due to the reasons which have nothing to do with the Iranian contractors obligations when actually the contractor has rightly met all engineering specifications and fulfilled its contractual obligations but still the foreign employer does not pay for the goods/services and has violated or dishonored the contract articles and does Not want to keep its payment obligations. 
• Non-payment or any example of protracted default which leads to the failure by a employer to pay the contractual due payments within a pre-defined period calculated from the due date or extended due date which leads to non-reception of the price of invoices on the due date by the Iranian contractor.
• Employer's lack of financial ability due to bankruptcy, insolvency, lien or suspension of its activities which in the end leads to the nonpayment of invoices.

B) Political risks:

• The stop of trade relations or the severing of political relations in between Iran and the employer’s country, so that as a result, the exporter/contractor does not succeed in receiving its invoice receivables from the foreign employer. 
• Enforcement of restrictive economic policies that block exporters' receivables.
• Restrictive enactment of trade policies related to import and any currency restrictions in the employer's country.
• Expropriation of property from the employer due to nationalization or confiscation of property in such a way that the foreign employer is unable to fulfil its payment obligations and as a result the Iranian contractor does not succeed in receiving its receivables for the invoices issued.

• Other factors beyond the control and supervision of the Iranian contractor and the foreign employer, which, as determined by the Fund's Board of Directors, leads to the non-collection of project receivables by the contractor.

Who might apply?
Exporters who export technical and engineering services in the form of implementation of construction projects (techno-engineering services) etc., in the overseas projects and EPC contracts may apply for this policy.
Premium Calculation:
The amount of the relevant insurance premium is calculated according to 4 different issues:

5. The destination country’s risk group
5. The repayment period by the employer
5. The credit rating of the employer (Sovereign, Sub-Sovereign and Private company (form Category A to Category E)
5. The Franchise and the maximum political or commercial risks under cover