Non-Payment Insurance

Non-Payment Insurance

Non-Payment Insurance
Short-term (up to 2 years); Medium-Long term (up to 7 years)

Lend to exporters with confidence to get paid.

ECI’s Non-Payment Insurance reduces a bank’s risk of loss due to non-payment on loans. These loans are given by UAE banks for the purchase of goods of UAE origin, or trade finance loans that are used to prepare and execute UAE export contracts.

Key Benefits

Reduce the risk of the unknown
Reduce the risk of the unknown

ECI is committed to supporting exports that serve the national interest. Our Non-Payment Insurance makes it easier to lend to unknown clients by protecting UAE banks against payment defaults on loans granted to businesses that are engaged in the trade of UAE origin goods and UAE export contracts.

Minimize loss in case of default
Minimize loss in case of default

In case the borrower defaults on the loan repayment, the bank can file a claim with ECI to minimize loss.

Use ECI’s insurance as additional collateral
Use ECI’s insurance as additional collateral

Banks can support clients who may not provide sufficient collateral or if the internal credit limit is reached. ECI’s Non-Payment Insurance acts as additional collateral.

Leverage ECI’s Fitch rating to access capital relief
Leverage ECI’s Fitch rating to access capital relief

ECI is an AA- Fitch rated company. Our insurance products allow banks to significantly reduce the amount of capital that must be allocated to the asset.

Product Features at a Glance

Eligibility criteria:
Open for UAE registered banks and lending institutions.
Payment Terms:
Up to 7 years.
Risks covered:
Non-payment by the borrower.
Up to 90% of the principal debt.
Policy period will match repayment terms of the loan.
Percentage of the risk premium that the bank charges.
Overdue notification:
The policy will state at what point you will report that a client is late with his payments.

How It Works

Step-by-step Guide

Information Gathering

The bank contacts ECI about the loan it wants to insure to confirm that the loan is insurable. Loans that have already been disbursed are not eligible for insurance.

Initial Quote

If the loan can be insured, ECI will provide an initial, non-binding quote as well as an overview of the information needed to make a thorough assessment for a binding proposal. The documents required will include evidence of the relationship between the purchases that are funded and future exports.

Thorough Assessment

After the bank submits the required documentation, ECI will perform a thorough assessment of the buyer and transaction. The underwriter will work with the bank for mutual agreement on the risks involved, risk mitigation, and policy wording.

Policy Agreement

Once internal and external approvals are given, and the bank agrees to the terms and conditions, the policy is signed and active. The bank can now sign the loan agreement and disburse the loan.

Trade and Protection

ECI will only be involved if there is a payment default or indications of potential payment problems. Borrowers can trade with confidence and banks can feel secure knowing they are protected.

Remember, this is a simplified guide, and each step can be tailored to suit the unique requirements of your business operations. Your financial security is our priority.

Get an instant premium estimate

Credit insurance is crucial for safeguarding your business transactions, especially when customers default on payments. Understanding the cost of this protection is vital for strategic planning. ECI offers a quick and easy way to calculate the annual cost of trade credit insurance tailored for your business.

Find your cost estimate quickly and easily here!

Simplified Claims Journey
Simplified Claims Journey
Step 1
Default Notification
Default Notification

The bank notifies ECI as soon as it becomes aware that there could be a payment problem. Notification is mandatory 30 days after default on a scheduled payment.

Step 2
Recovery Effort
Recovery Effort

ECI will work together with the bank to agree on the best way to manage recovery. Amicable resolution of payment delays, assistance from a specialized agency, or initiating formal litigation may be used to recover payment.

Step 3
Claim Submission
Claim Submission

Once it is determined that not all payments can be recovered, the bank can submit a claim along with evidence of loss and policy compliance.

Step 4
Swift Evaluation
Swift Evaluation

ECI will assess the claim diligently, ensuring transparency and adherence to policy. The claim assessment can take up to one month.

Step 5
Clearance for Payment
Clearance for Payment

After the assessment is complete, ECI will send details of the calculation for approval and sign-off. The claim will be promptly paid out.

Step 6
Post-Claim Recovery Journey
Post-Claim Recovery Journey

If there is still a chance of potential recoveries, ECI will work in collaboration with the bank for additional recovery efforts. Any recoveries will be shared between the bank and ECI as per the policy agreement.

Get started with boosting your bottom line and trading with confidence today!

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