How do I lodge a claim?
You must lodge your claim by filling in 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 the settlement of your claim.
When should a claim be submitted?
A claim should be submitted according to the guidelines specified in the policy.
When will I get paid?
Claims are paid:
- In case of commercial risk such as insolvency or bankruptcy of buyer – as soon as practicable
- In other noncommercial cases such as New law applied outside the country which restricted the possibility of transfer of money to the exporter.
How much will I be compensated?
If your amount of loss does not exceed your credit limit, the compensated amount will be the amount of loss multiplied by the percentage of indemnity.
If your amount of loss exceeds your credit limit, the compensation will be the amount of credit limit multiplied by the percentage of indemnity.
Factors effecting your claim.
- Essentially, a credit insurer needs to be assured that:
- Your claim is in relation to an event of loss covered under your Policy.
- You have an appropriate credit limit on the buyer and have declared the shipment.
- You have complied with all the terms and conditions of the Policy.
- And the contracts of sale between the buyer and yourselves have been properly executed by you.
What is the percentage of claim payment?
EGE undertakes to indemnify up to 80% of the losses.
What usual actions for minimizing losses would you suggest taking?
It depends on the circumstances of the case. Generally speaking, in the case of insolvency, it is important that you promptly register the amount the buyer owes you and other detail with his receiver/liquidator/administrator.
In the case of potential default, we suggest that you send a strongly worded letter to the buyer demanding immediate payment. You may also arrange, through your bank, to have the bills protested the buyer if circumstances indicate that this action is worthwhile.
In the case of repudiation, you should first arrange proper storage of and insurance for the goods involved. Then you should send a written demand to the buyer to take delivery of and pay for the goods within a certain time limit. If such action fails, you should look for alternative buyer and hold the original buyer responsible for any losses incurred.
You should keep us promptly informed of your actions.