Trade Credit Insurance

Credit Insurance helps the Insured to build financial Credibility, protect and expand Market share, reduce bad debt reserves, limiting risks and improve cash flow. Information required for acceptance of proposal:

  • Annual Sales turnover
  • Volume of Credit sales
  • Standard terms of payment
  • Recent bad debt losses & overdue
  • Credit limit requirements of few top customers
  • Quality of credit management system adopted by the Client
  • Excess including voluntary excess if any adopted by the client

Product features:

Credit Insurance protects the Insured against defaults non-payments and insolvencies of the buyers. Thus, it offers protection against failure of its customers to pay their debts either in full or in part on account of named circumstances. These circumstances are generally as follows:

  • Insolvency/Bankruptcy of the buyers
  • Buyers failure to pay/Protracted Default (delay beyond agreed number or days)
  • Transfer Delay / Currency Inconvertibility
  • Political risks including import/export trade restrictions– for international trade only
  • War and Allied perils


  • General moratorium on payment by the government of buyer’s country r
  • Cancellation of import license
  • Government decision preventing performance
  • Political events, economic difficulties, legislative or administrative measures preventing payment
  • Non payment by government buyer


  • Trade Disputes – (This being is business risk remain uninsured throughout the market)
  • Non-compliance with its’ own contract conditions towards the buyer
  • Failure to obtain import / export license
  • Debts due from associated companies, consumers & government bodies
  • Exchange rate fluctuations
  • Debts arising from letting/ leasing of property
  • Natural calamities
  • Devaluation or Foreign Exchange Risks

Insurance procedure:

  • The Insurer analyses the creditworthiness of the Insured’s buyers and facilitates self- assessment of smaller accounts. A credit limit is set for each client which reflect the maximum outstanding amount insured – Credit Insurance pays upto 90% of the Insured Debt and collection expenses. The monthly statements of sales are received by the Insurance Companies