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TOLL FREE - 1800 103 5499
CALL US - 0124-4285499
SMS "CLAIM" to 56677
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As a result of Globalization, there is growth in trading opportunities and companies are faced with increasingly complex needs in terms of trade receivables management. Credit Insurance is a tool which helps the companies to expand business with peace of mind.
Credit Insurance protects the companies against customer defaults. It covers the sales of the companies to its buyers on credit against the risk of loss due to the insolvency of their customers.
Credit Insurance plays a vital role in the trading cycle of any company by protecting profit, cash flows, sales growth, the balance sheet and a company's customer base. It can be of great help in growth of sales by allowing the secure development of new buyers, new markets and the credit extended to a buyer.
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We at ITGI in cooperation with Coface, which is global leader in credit management services and credit insurance, are able to provide the credit insurance services to the clients.
The risk covers are as follows:
Export Credit insurance covers:
Commercial Risks:
Covered:
- Protracted Default or Delayed Payment by the debtors.
- Insolvency.
Not covered:
- Trade disputes
- Non-Acceptance of goods
Political Risks:
Covered:
- Natural disasters like earthquake, cyclone, floods, etc.
- Import license cancellation
- Protracted Default on State Owned Entities
- Any measure taken by the country where buyer is located, preventing payment of a transaction.
Not covered:
- Devaluation or Depreciation of currencies
- Protracted Default or Delayed Payment by the debtors.
- Insolvency.
Not covered:
- Trade disputes
- Non-Acceptance of goods
The premium is calculated as a rate % on the amount of insured turnover (estimated or projected credit sales for the financial year)
The policy commences only after the insured or the policy holder applies for credit limit on each buyer (Debtor) and is duly approved by us.
The credit limit is the maximum exposure (outstanding debt) of the insured against that particular buyer at any given point of time.
Up to 90% of the insured debt, for both commercial as well as political risks.
Unlike other insurances, there is a waiting period of 5 months in this policy. The policy holder has the option to grant extensions to the debtor for payment within the maximum credit period specified in the policy without paying any additional charge and without prior approval.
Presentation/Discussion on credit insurance.
Details from the client, of risk coverage desired and completion of Proposal Form. The indicative rates to be given to the client. Policy to be issued after agreement on terms and conditions and collection of premium.
Note: The sales to subsidiaries, sister concerns and public sector enterprises not covered. The minimum spread of buyers essential, covering 60% of credit sales. |
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