It insures exporters from losses that may arise from a variety of commercial and political risks inherent in all export transactions.
Features:
Credit Insurance enhances exporters capacity to compete in the international markets and enables them to enter into new markets, introduce new products and take up new buyers.
It helps exporters to meet the requirements of commercial banks extending export credit.
The insurance covers enable the banks to extend timely and adequate export credit facilities to the exporters.
The premium rates are kept at the optimal level.
Inclusions:
Insolvency of the buyers
Protracted default and non-acceptance of exported goods.
Insolvency and protracted default of the N/C issuing bank.
Political risks such as war and civil disturbance.
Moratorium
Imposition of new import or exchange control regulations.
