Credit Insurance For Corporates

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 ?

  1. Exporter enters into a sale contract with importers / buyers.
  2. 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.
  3. The exporter ships the goods to the buyers and declares the shipments to ICIEC
  4. 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.
  5. ICIEC recovers from the buyer and pays 10% share to the exporter.
1
...