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Credit Insurance
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Introduction
Our Credit Insurance (Globalliance) 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. (Code: Misc 31)
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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 |
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Premium
The premium is expressed as a rate in % of the insurable turnover
Basis of premium calculation:
| Extent of coverage sought |
| 70% / 80% / 90% of the individual bill |
| Risk rating of business sectors |
| Countries included in the portfolio |
| Insured turnover |
| Trade losses of insured |
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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 & 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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