More Details

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

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

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