Credit Insurance
Credit Insurance Policy is designed for companies that are selling their goods and/or services on credit to overseas buyers. This policy provides coverage to companies for outstanding receivables that are within approved credit terms, thereby protecting the Insured against non-payment risk by its buyers.
Scope of cover
The policy covers loss due to any or all of the following risks:
Commercial Risk
Non payment by the buyer – protracted default
Insolvency of the buyer
Political Risk
Military or civil war, revolution, riot or insurrection
General moratorium on payment by the government of buyer’s country
Cancellation of import license
Government decision preventing performance
Political events, economic difficulties, legislative or administrative measures preventing payment
Non payment by government buyer
Exclusions
Significant exclusions are:
Non-payment arising due to trade disputes
Sales to a private individual who intends to use the goods or service for non-professional purposes
Sales to an associate company (political and AOG risk can be covered)
Sales contracts where payment is received in advance
Sales under irrevocable and confirmed Letter of Credit
Loss due to foreign currency fluctuations
Nuclear risks
A war between two or more of the following countries: France, China, Russia, the United Kingdom and the United States of America
A war between the Insured’s country and the country of the buyer
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