Credit Insurance For Corporates
– Insurance of Supplier Credit
- Insolvency of the buyer / issuing bank.
- Failure or refusal of the buyer to pay.
- Refusal of the buyer to accept goods after shipment.
- Arbitrary cancellation of the contract by the buyer.
- Currency transfer restrictions by the buyer’s country / issuing bank’s country.
- Expropriation by the government of the buyer.
- War or civil disturbance in the buyer / issuing bank’s country.
- Protects balance sheet against non-payment of export receivables.
- Enhances competitiveness.
- Increases international sales by offering flexible payment terms to overseas customers.
- Offers to customers open account credit terms while protecting the insured against credit risk.
- Helps access working capital facilities from banks by assigning the insurance policy to the banks as security.
- Nationals of a Member Country.
- Corporations or other juridical entities located in ICIEC member countries or owned at least 50% by the IsDB or by a Member Country if located in Non-member countries.
- Goods should have at least 20-30% value-added from one or more Member Countries.
- In case of capital goods or strategic commodities, the above criteria are not applicable. However, the buyer should be in a Member Country.
- Goods not prohibited by Islamic Shari’ah.
- Up to 7 years
How It Works ?
- Exporter enters into a sale contract with importers / buyers.
- The exporter concludes an insurance contract with ICIEC to cover non-payment risks of up to a certain percentage (e.g. 90%) and pays the premium.
- The exporter ships the goods to the buyers and declares the shipments to ICIEC
- In case one of the buyers fails to pay, the exporter submits a claim to ICIEC which indemnifies the exporter for up to 90% of the covered amount.
- ICIEC recovers from the buyer and pays 10% share to the exporter.
