Policy Covers:

Domestic & Export sales

There are 2 types of Risk is covered

v  Commercial Risks

·         Insolvency of buyers

·         Protracted default of buyers (Non-payment of buyers)

v  Political Risks (Covered under Export Sales)

·         war/civil war

·         Exchange Transfer delay

·         Any Import restrictions

 Exclusion:

§  Default of Insured agents

§  Any Penalties or Damages buyers entitled to pay

§  Cost incurred in resolving disputes between the insured and the buyers

§  Radioactive contamination

§  Sales contract made with the private individuals

§  Any compromises without approval

§  Dishonesty /Fraud of insured

 Benefits of policy:

·         Access to unbiased credit risk experience as well expertise and analysis of buyer

·         Continuous monitoring of buyer Risks,

·         Reduce your credit investigation costs

·         Opportunity to expand business into new riskier market

·         Growth within existing accounts by offering open account terms, higher credit sales and longer payment terms

·         Better financing terms

·         Reduction in bad-debt reserves thereby freeing working capital

·         Secure the company cash flow– a large portion of business failures are directly attributed to uncollectible accounts

Buyer Risk Assessment:

·         Policy will constantly monitor all buyers of insured and will provide timely report considering the financial risk on buyers in terms of :

-  Financial performance

-  Industry trends

-  Adverse information

-  Growth prospects

·         These reports are Unbiased, third party credit opinions Sources of information may be Existing database Public information, Information agencies, Underwriters’ visits to clients & debtors, Companies’ Registrars, Payment Experience from policyholders, Information of overdue from policyholders and Industry & economic analysis

·         All buyer are assessed and individual buyer Credit limit are assigned. Limit fixation exercise is dynamic process where the limit can be agreed in full, partial or declined with reasons.