Workmen's Compensation Insurance Policy Workmen's Compensation Insurance Policy

Trade Credit Insurance

  • Introduction
  • What’s covered ?
  • What’s Not covered?
  • Why Choose HDFC ERGO?

Trade Credit Insurance

Trade Credit Insurance also known as Credit insurance is a risk management tool that covers the payment risk resulting from the delivery of goods or services. Under this policy credit insurer usually covers a portfolio of buyers and pays an agreed percentage of an invoice or receivable that remains unpaid as a result of insolvency, bankruptcy or protracted default. For e.g. An Indian toy manufacturer sells toys on credit to International Clients. It seeks protection against payment delays and non-payment by its buyers. A “Whole turnover” trade credit insurance policy, which covers all of the toy manufacturer’s buyers, the “good, the bad”, is the solution . In exchange for a premium, which is based on the annual turnover and credit risk of its buyers, the toy manufacturer receives protection up to an agreed percentage of any losses incurred against late payment or the failure to pay by its buyers.

 

What’s Covered?

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The policy has been designed to cover insured against the commercial risks of their buyer’s default. Read More...

What’s not covered?

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Radioactive Contamination

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Disputes with the buyer resulting withholding of partial or full payment .

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Cost incurred in resolving disputes between the insured and the buyer.

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Any penalties or damages buyer entitled to pay.

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Any interest accruing after the original due date of payment

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Banking cost, unless contractually agreed to be part of the amount owing from the buyer

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Buyers under direct or indirect control.

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Sales contract made with the private individuals

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Amount owed by State or governmental department, institution or organization which cannot be declared insolvent. .

Benefits of Trade Credit Insurance

Protects the company’s P&L and Balance Sheet against bad debt

Potentially reduce and quantify bad debt provisions

Better borrowing and financing options

Increase profitability

Grow sales with confidence

Prevent losses before they occur

Maintain cash flow, profitability and protect budgets and business plans

Information, screening of clients.

Improve credit decisions

Protects investors and stakeholders

Why HDFC ERGO?

Secured Over 1 Crore+ Smiles!

Trust redefines relations at HDFC ERGO. We consistently strive to make insurance easier, more affordable and more dependable. Here promises are kept, claims are fulfilled and lives are nurtured with utmost commitment.
Why HDFC ERGO?

All the support you need 24x7

We understand that in times of distress, instant help is the need of the hour. Our In-house claims team provides round the clock support to ensure hassle-free claim experience. We ensure to be your constant support system in times of need.
Why HDFC ERGO?

Catering customer needs

Since, last 16 years, we have been catering to endless customer requirements endlessly. By providing wide range of plans and add on covers for every portfolio.
Why HDFC ERGO?

Transparency at its best

HDFC ERGO General Insurance claims are settled with utmost transparency and ease.
Why HDFC ERGO?

Awards

We have received ICAI Award of the Year for excellence in financial reporting FY:18-19
Why HDFC ERGO?

Secured Over 1 Crore+ Smiles

Trust redefines relations at HDFC ERGO. We consistently strive to make insurance easier, more affordable and more dependable. Here promises are kept, claims are fulfilled and lives are nurtured with utmost commitment.

All the support you need-24x7

We understand that in times of distress, instant help is the need of the hour. Our In-house claims team provides round the clock support to ensure hassle-free claim experience. We ensure to be your constant support system in times of need.

Catering customer needs

Since, last 16 years, we have been catering to endless customer requirements endlessly. By providing wide range of plans and add on covers for every portfolio.

Transparency at its best

HDFC ERGO General Insurance claims are settled with utmost transparency and ease.

Awards

We have received ICAI Award of the Year for excellence in financial reporting FY:18-19
Awards & Recognition
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