Export Credit Insurance – an overview

Our Credit Insurance 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.


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


 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



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


Source: ICICIlombard

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