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Trade Credit Insurance
Trading risks are always present and one of the most common risks when trading on credit terms is non-payment by a buyer. Trade Credit Insurance could be the solution to protect your business against non-payment exposures and avoid financial losses.
Since 2011, TMIV has co-operated with Atradius to introduce Trade Credit Insurance product in Vietnam. The support from Atradius shall ensure the best protection and technical consultancy while TMIV’s proven prompt and customer oriented service shall deliver the best satisfaction to clients.
Trade credit insurance covers the risk of financial loss caused by:
- Buyer’s insolvency: Insolvency is the situation in which the buyer can no longer meet its financial obligations with its goods seller(s) or service provider(s) as debts become due. Insolvency can lead to insolvency proceedings, in which legal action will be taken against the insolvent entity, and assets may be liquidated to pay off outstanding debts.
- Protracted default by the buyer: This happens when the buyer fails to pay the contractual debt within a pre-defined period calculated from the original due date of the debt.
Trade credit insurance generally excludes:
- Losses related to nuclear;;
- Failure to fulfil the contract or to comply with any law;
- Failure to obtain any necessary import or export licence;
- Losses arising in connection with the third country.
Specific exclusions will be mentioned in your policy.