Trade Credit Insurance

Together with Marine Cargo Insurance, Trade Credit Insurance is the protector for manufacturing and trading companies during transactions with their customers. While Marine Cargo Insurance covers the physical loss/damages to the cargo during transit and before reaching the buyer, Trade Credit Insurance protects the sellers from non-payment exposures. This insurance works much more efficiently than traditional methods of seller-protectors such as L/C due to its simplicity and wider protection.

In co-operation with Atradius, Baoviet Tokio Marine launched a Trade Credit Insurance product in Vietnam in July 2011. Baoviet Tokio Marine is the exclusive partner of Atradius for underwriting and client service in the Vietnam market. Atradius shall act as the technical supporter and reinsurer for Baoviet Tokio Marine.

With more than 85 years of experience and rating of “A“ by A.M. Best and "A3" by Moody's, Atradius is among the top 3 trade credit insurers in the world. The support from Atradius shall ensure the best protection and technical consultancy for clients while Baoviet Tokio Marine’s proven prompt and customer oriented service shall deliver the best satisfaction to clients.

 
 
Why is trade credit insurance necessary?
  Running a business of any size is never easy and trading risks are always present, particularly when trading internationally on credit payment terms, where the potential for non-payment is always a possibility for many reasons.
  If you have already experienced the pain and disruption of payment default, as a result of customer’s insolvency, for example, you’ll probably want to avoid it happening again, which is where credit insurance can help protect your business against these risks.
What is trade credit insurance?
  Credit insurance is simply a way of protecting your business against the risk of not getting paid when you’re trading on credit payment terms. Once the goods have been dispatched and your customer has accepted delivery, they are obliged to pay you by the due date. However, if you don’t get paid, then the credit insurance policy covers you against this potential financial loss.
What will my policy cover?
  Most credit insurance policies are normally tailored to suit the specific needs of an individual business and take into account your customers’ trade sectors, the level of credit allowed, the country in which they’re based and a range of other factors to ensure the cover meets your precise needs.
  Ultimately, a credit insurance policy can cover the risk of financial loss caused by a range of factors, such as:
Customer insolvency
Bankruptcy
Suspension of payment
Protracted default
Public buyer default
Government moratorium
Foreign exchange shortage
Transfer risk
War, civil unrest and political risk
Contract frustration
License cancellation
What are the benefits?
Up to 90% of contract value is covered and paid as a result of a claim
Your business is protected from the risk of customer non-payment
Reduced risk of bad debts
Improved cash flow
Helps you trade more securely and safely
Improved credit management processes within your business
Credit insurance policies usually include a professional collections service
Flexible, tailored cover to suit your precise business needs and risk profile
Improved access to finance as banks see credit insurance as a positive indicator
Provides enhanced stability and the freedom to trade as the risks are covered

To find out more about Trade Credit Insurance, please see FAQs or contact us.

Contact us for any queries you may have
Proposal Form
Claim Form

 

Head Office
Room 601, 6th Floor, Sun Red River Building, 23 Phan Chu Trinh, Hoan Kiem Dist.,
Hanoi, Vietnam
Tel: (84.24) 3933 0704   Fax: (84.24) 3933 0706



Branch Office
Room 3, 19th Floor, Green Power Building, 35 Ton Duc Thang, District 1,
Ho Chi Minh City, Vietnam
Tel: (84.28) 3822 1340   Fax: (84.28) 3822 1338



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