CREDIT INSURANCE INSURANCE.pdf · Assist in documentation ... We are leading Consultant in CREDIT...
21
Transcript of CREDIT INSURANCE INSURANCE.pdf · Assist in documentation ... We are leading Consultant in CREDIT...
Ideal – who we are? We take immense pleasure to introduce our company, Ideal Insurance
Brokers (P) Ltd. as a Knowledge Processing Organization, which provides Risk Management solutions to its Clients. Ideal Insurance is promoted and managed by experienced and qualified team of professionals.
We are specifically into Insurance Broking and Risk Management services. We are proud to be among the few to be granted a license by IRDA to act as direct insurance brokers for both – Life and General Insurance.
Our Consultants possess the specialized skill sets to provide complete solutions on risk management and insurance.
2
Identify and evaluate your needs
Design your Insurance Portfolio
Choose the Right Product
Negotiate with the Companies for the most competitive rates
Assist in documentation
Claims Management- After all money matters
Claims Handling
Legal Representation
3
We are leading Consultant in CREDIT INSURANCE.
The expertise we have enables us to get the right policy with right
coverage in time.
We have special presence in Jewelers & Diamonds industry(already
serving 40 plus clientele from Seepz & opera house)
No Hassel to Exporters & all services at their door step that too without
any cost.
4
WHY CREDIT INSURANCE?
1. Protection against bad debts
2. Financing
3. Balance-sheet Protection
4. Corporate Governance
5. New Markets
6. Debt Collection
7. Information, screening of clients
8. Avoidance of internal conflicts
9. Reduction of fixed overheads
10. Relax existing credit conditions
5
Credit Squeeze: Is your customer still credit worthy?
“We’re still waiting to be paid
by our customer”
“We’re not going to pay since you
put a freeze on shipments”
“The signatory is away” “We need a few days more to
make payment”
6
The Concept of Credit Insurance
Insures companies against the risk of non-payment by their customers
as a result of commercial &/or political risks
Commercial Non Payment Risk Political Non Payment Risk
InsolvencyDefault
Government MoratoriumWarNatural DisasterNon-transfer of FundsImport License Cancellation
7
LOCAL PLAYERS
Ecgc
New india (atradius)
Tata aig (euler hermes)
Icici lombard (coface)
Bajaj allianz (euler hermes)
Iffco tokio (qbe)
8
ECGC-An Export promotion Institution
Provides credit risk covers to Exporters against non payment risks of the overseas buyers / buyer’s country in respect of the exports made.
Provides credit Insurance covers to banks against lending risks of exporters
Assessment of buyers for the purpose of underwriting
Preparation of country reports
International experience to enhance Indian capabilities
An ISO organization excelling in credit insurance services
Rated “AAA” by CRISIL for claim paying ability
9
ECGC Services
CREDIT INSURANCE COVERS to exporters against Credit Risk losses in export
of goods & services both under Short term and Medium and LT
CREDIT INSURANCE COVERS to banks to protect them against risks of non
payment by exporters both under Short term and Medium and LT
OVERSEES INVESTMENT CREDIT INSURANCE COVERS AS to protect Indian
Entrepreneurs investing in Overseas Ventures (Equity/Loans) against
expropriation risks
EXCHANGE FLUCTUATION COVERS to exporters to protect them in respect of
their exchange losses under Medium and LT exports
10
Benefits to Exporters
Reduces Financial Risk
Protection against trade credit risk losses
Releases bad debt provisions
Hedges against financial catastrophe
Claims payment
Maximises debt collection
Better access to finance
Credit check and control
Creates discipline and control
Offers a second opinion
Fewer bad debts
Encourages mostattractive terms
Improves financial health
Check on potentialprospects
Improves Cash Flow
Supports Credit Management
Improves Sales
11
EXPORT INSURANCE
Goods Receivables
Exchange RiskLoss or Damage
Marine Insurance
Hedging by Authorized
Dealers
CREDIT
INSURANCE
Payment Risk
12
RISK COVERED BY ECGC
LC
RISKS
POLITICAL RISK (Open Cover
and Restricted cover )
COUNTRY
BUYER BANK
LC / NON – LC
COMMERCIAL RISK
13
WHAT IS NOT COVERED ?
Loans
Leasing
Guarantees
Disputes
Risk on private persons
14
HOW DOES IT WORK
15
Contract
date
Shipment and
invoice date
Credit Period
Probable
loss
Protracted
default
Due
date
Manufacturing
Period
•set credit limits •send invoices
•declare turnover•due date
•apply internal
credit
management
procedures
• declare over due
(file a – ROD)
•stop further
shipments
• start collection
• submission of claim
180 days 30 days
waiting period
120 days
Maximum
Extension Period
InvoicingPeriod
30 days2 months
• declare over
due
Claim
payment
Products offered to Exporters
Standard Policy
Small Exporters policy
Specific Shipment Policy (short term)
Export Turnover policy
Specific buyer wise policy
Consignment export ( Stock holding agent)policy
Consignment export (Global entity) policy
Single buyer exposure policy
Multi buyer exposure policy
Software project exports policy
IT enabled (single customer) policy
IT enabled (multi customer) policy
SME Policy
Customer specific policy (Tailor made)
16
ECGC COUNTRY CLASSIFICATIONS
Group Open Cover
Restricted
Cover
(Category I)
Restricted
Cover
(Category II) Total
A1 63 0 0 63
A2 34 0 0 34
B1 38 1 1 40
B2 26 3 1 30
C1 37 11 4 52
C2 3 5 2 10
D 4 1 3 8
Total 205 21 11 237
17
EXPORT STIMULUS PACKAGE
Additional cover of 5%, subject to maximum protection of 95% available for all MSME exporters
All exporters of Textiles ( including handicrafts and handlooms), Gem & jewellery, leather, engineering goods, carpets, project goods, auto components and chemicals will also get the additional protection of 5%
Additional cover through the National Export Insurance Account of the GOI
Bank advances to MSME borrowers for exports will get an additional protection of 10% subject to maximum protection of 85% under the Credit Insurance covers to banks
18
19
Contacts : Branch Locations
Navnit Kumar
Branch Head, Mumbai
Mobile : 98 20 14 19 18
E Mail : [email protected]
Kolkata
Mumbai
Pune
Kota
Guwahati
Indore
Barbil
Anand Kumar Gupta
Credit Risk Manager, Mumbai
Mobile: 98 20 14 19 13
E Mail: [email protected]
Office : 202, Linkway Estate, Link Road, Malad west
Mumbai-400064
Ideal Insurance Brokers Pvt. Ltd.
We at IDEAL would like to assure “Marathon Electric Motors(India) Limited” a
Seamless Service Experience with a focus on building a Long Term Relationship.
Your Risk With Ideal
20
Thanks
21
