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.
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.
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.
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:
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.
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 ClaimEssentially, a credit insurer needs to be satisfied that: