Colombia recently enacted a new law that relaxed the requirements to offer P&I cover for Colombian flagged vessels trading internationally. This new regulation allows foreign underwriters and brokers to register before the Financial Superintendency and provide coverage without need of local fronting.
This year we have successfully finished the registration of 3 P&I Clubs and we maintain a fluent relationship with the Superintendency authorities. Therefore, we would be pleased to assist you with the registration process which takes around 2 months after all documents have been submitted.
The advantages, among others are that the companies registered in RAIMAT don’t need to use a local insurance company to front the policy, they can place it directly. Furthermore, local consignees do not need to pay for the value added tax (IVA) equivalent to 16% of the policy amount nor the usual 5% commission given to the local fronting company.
Finally, aalthough the foreign insurance companies registered in the RAIMAT need to be approved by the Financial Superintendence, these are not being neither monitored nor under surveillance by Colombian authorities.
In order to receive further information about this new registration, please do not hesitate to contact us.