B Insurance of a Short Term Export Supplier Credit against the Risk of Non Payment Short description of insurance product and contacts

I. Short description of insurance product

The export supplier's credit is a credit provided by the exporter to the importer (foreign entity) in the form of deferral of payment for the delivered goods or services (export claim).

The maturity of short tail export supplier's credit (export claim) is shorter than 2 years.

The export supplier's credit has not a character of a bank credit.

The insured entity is directly the exporter against the risk that the importer does not pay in the due date properly the whole owing sum, i.e. the price for the delivered goods and services (export claim).

The subject of insurance are export claims, i.e. claims of the insured towards the importer, from export supplier's credit i.e. claims for payment of obligations following from export contract (payment for delivered goods and services) specified in the insurance policy.

The insured event is a partial or complete non-payment of the insured export claim due to commercial or territorial reasons or their combination. Commercial reasons are: general importer's incapacity to pay his due obligations (financial insolvency) or rejection of payment without legal reason (unwillingness to pay). Among territorial reasons are e.g. administrative decisions or legislative measures of importer´s country hindering him to pay or limitation of conversion of payments due to political events in importer´s country, as well as other events in importer´s country, as war, revolutions, civil commotions and natural catastrophes.

The amount of premium depends on the export volume, agreed payment terms and conditions, way of payment reinsurance, evaluation of character and risk rating of importer, evaluation of risk exposure of the country or territories associated with the performance of export contract and on the deductible amount. The agreed amount of premium includes already the possible increase or decrease of risk insured and is unchangeable for the whole term of insurance duration.

The preliminary premium calculation is available through interactive calculator.

Jan Dubec, Director of Acquisition and Suppliers Credit Insurance Department
phone:+420 222 842 328
fax:+420 222 844 130
e-mail:dubec@egap.cz

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