Major Benefits

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Risk Assessment and Monitoring

Apart from offering insurance cover, the Corporation provides exporters with risk assessment and monitoring support whereby it advises exporters on the prudent level of credit they may grant to their buyers. The Corporation maintains a worldwide database of buyers whose information is regularly updated from various sources including an international network of credit information agencies, and whose creditworthiness is regularly monitored by its underwriters.

Collateral for Discounting Export Bills

The Corporation’s insurance policies are generally accepted by the banking community as collateral for the discounting of export bills. Under this arrangement, the protection accorded to a policyholder by the Corporation’s cover is extended to the policyholder’s bank by a Letter of Authority, which authorises claims to be paid directly to the bank. Such an arrangement can be instrumental in helping policyholders obtain the banking facilities they need. In addition, by using the Corporation’s online platform, EC-link, banks holding Letters of Authority can check their customers’ shipment records and the updated terms and conditions of the insurance cover at any time. This facility is widely used by banks as part of their credit management processes.

Providing Assistance in Loss Minimisation

With an international network of lawyers and debt collectors available to call on, the Corporation assists policyholders in solving payment problems and advises them on practical ways of minimising losses when they trade. It shares all approved recovery expenses in the same proportion in which the original loss was shared between the policyholder and the Corporation.

Claims and recoveries

1. How do I lodge a claim?

You must lodge your claim with the Corporation by completing a claim form which will be provided to you. You should give ALL the details and ALL supporting documents requested in the claim form. Incomplete documentation can seriously delay processing and settlement of your claim.

2. When should a claim be submitted?

A claim should be submitted within the period specified in the Policy.

3. When will I get paid?

Generally, claims are paid after the waiting period. Subject to compliance with the terms and conditions of the Policy, ECIC will pay claims:

  • in case of insolvency or bankruptcy of the buyer - as soon as practicable;
  • in case of protracted default in payment i.e. failure by the buyer to pay for the goods delivered to and accepted by him - 4 months after the due date for payment;
  • in case of repudiation i.e. non-acceptance of the goods by the buyer - as soon as practicable after receipt of evidence of resale of the goods by the policyholder;
  • in case of delays in the transfer of payments - 4 months after the date of the buyer making the deposit in local currency or 4 months after the due date for payment, whichever is the later (this may be extended for certain countries);
  • in case of any other event - 4 months after the event which causes the loss, provided that the amount of loss has been established.

4. What happens if the buyer raises a dispute?

A claim cannot be paid unless such dispute has been resolved, either by agreement, or by way of a judgement against the buyer enforceable in the buyer's country, or in any other way we may agree.

A loss cannot be indemnified if it is caused by the policyholder's own fault. From our experience, it is not uncommon that some buyers will raise a dispute for the sole purpose of avoiding payment. Once we are reasonably assured that you have executed the contract of sales correctly and have complied with the terms and conditions of the Policy, we will admit liability and settle the claims.

5. How much will I be compensated?

If your amount of loss does not exceed your credit limit, the amount compensable is the amount of loss multiplied by the percentage of indemnity.

If your amount of loss exceeds your credit limit, the amount compensable will be the amount of credit limit multiplied by the percentage of indemnity.

6. Is recovery action really worth the effort?

Definitely, especially when the estimated recovery amount exceeds the total expenses to be incurred in obtaining it.

7. What should I do when I received recoveries?

You should pay the amount to ECIC in the same proportion in which the original loss was shared between you and ECIC .

8. Will the credit insurer share the recovery expenses?

Some credit insurers will share the expenses. At ECIC, we will share all approved recovery expenses in the same proportion in which the original loss was shared between you and us.

Factors Affecting Your Claim

Essentially, a credit insurer needs to be satisfied that:
  • each contract of sale between the buyer and yourselves has been properly executed by you;
  • you have an appropriate credit limit on the buyer and have declared the shipment;
  • your claim is in relation to an event of loss covered under your Policy; and
  • you have complied with all the terms and conditions of the Policy.
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