Upload
sonamrakvi
View
627
Download
2
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
1
Navnit Kumar(Credit Risk Manager)
IDEAL Insurance Brokers Pvt LtdMOBILE: 9820141918
Email: [email protected]
CREDIT INSURANCE
Insurance Brokers
Insurance brokers are independent intermediaries who represent the client and not the insurance company, unlike an insurance agent who normally represents the company
What do we do…
We market Insurance Solutions for
“ALL INSURANCE COMPANIES”
Life & General
Public & Private
“Product Range”
ALL TYPES OF INSURANCE
Identify and evaluate your needs Design your Insurance Portfolio
Choose the Right Product
Negotiate with the Companies for the most
competitive rates
Assist in documentation
Claims Management- After all money matters
Claims Handling
Legal Representation
And what do we do for you…
5
WHY CREDIT INSURANCE?1. Protection against bad debts2. Financing3. Balance-sheet Protection4. Corporate Governance5. New Markets6. Debt Collection7. Information, screening of clients8. Reduction of fixed overheads9. Relax existing credit conditions
6
Credit Squeeze: Is your customer still credit worthy?
“We’re still waiting to be paid by our
customer”
“We’re not going to pay since you put a
freeze on shipments”
“The signatory is away”
“We need a few days more to make
payment”
7
The Concept of Credit Insurance
Commercial Non Payment Risk Political Non Payment Risk
InsolvencyDefault
Government MoratoriumWarNatural DisasterNon-transfer of FundsImport License Cancellation
Insures companies against the risk of non-payment by their customers as a result of commercial &/or political risks
LOCAL PLAYERS
1. ECGC
2. NEW INDIA (ATTRADIUS)
3. TATA AIG (EULER HERMES)
4. ICICI LOMBARD (COFACE)
5. BAJAJ ALLIANZ (EULER HERMES)
6. IFFCO TOKIO (QBE)
8
ECGC-An Export promotion Institution
– Provides credit risk covers to Exporters against non payment risks of the overseas buyers / buyer’s country in respect of the exports made.
– Provides credit Insurance covers to banks against lending risks of exporters
– Assessment of buyers for the purpose of underwriting– Preparation of country reports– International experience to enhance Indian capabilities– An ISO organization excelling in credit insurance
services– Rated “AAA” by CRISIL for claim paying ability
9
ECGC SERVICES
• CREDIT INSURANCE COVERSCREDIT INSURANCE COVERS to exporters against Credit Risk to exporters against Credit Risk losses in export of goods & services both under Short term and losses in export of goods & services both under Short term and Medium and LTMedium and LT
• CREDIT INSURANCE COVERS CREDIT INSURANCE COVERS to banks to protect them against to banks to protect them against risks of non payment by exporters both under Short term and Medium risks of non payment by exporters both under Short term and Medium and LTand LT
• DOMESTIC CREDIT INSURANCE COVERS DOMESTIC CREDIT INSURANCE COVERS toto Exporters and Exporters and Banks in respect of their local sales and working capital finance, Banks in respect of their local sales and working capital finance, respectivelyrespectively
• OVERSEAS INVESTMENT CREDIT INSURANCE COVERS OVERSEAS INVESTMENT CREDIT INSURANCE COVERS to to protect Indian Entrepreneurs investing in Overseas Ventures protect Indian Entrepreneurs investing in Overseas Ventures (Equity/Loans) against expropriation risks(Equity/Loans) against expropriation risks
• EXCHNAGE FLUCTUATION COVERS EXCHNAGE FLUCTUATION COVERS to exporters to protect to exporters to protect them in respect of their exchange losses under Medium and LT exportsthem in respect of their exchange losses under Medium and LT exports
10
11
Benefits to Exporters
Reduces Financial Risk
Protection against trade credit risk losses
Releases bad debt provisions
Hedges against financial catastrophe
Claims payment
Maximises debt collection
Better access to finance
Credit check and control
Creates discipline and control
Offers a second opinion
Fewer bad debts
Encourages mostattractive terms
Improves financial health
Check on potentialprospects
Improves Cash Flow
Supports Credit Management
Improves Sales
12
Payment Risk
Goods Receivables
Exchange RiskLoss or Damage
Marine Insurance
Hedging by Authorized Dealers
CREDIT INSURANCE
EXPORT EXPORT INSURANCEINSURANCE
RISK COVERED BY ECGC
13LC
RISKS
POLITICAL RISK (Open Cover
and Restricted cover )
COUNTRY BUYER BANK
LC / NON – LC
COMMERCIAL RISK
14
WHAT IS NOT COVERED ?
1. Loans2. Leasing 3. Guarantees4. Disputes5. Risk on private persons
15
Contractdate
Shipment andinvoice date
Credit Period
Probableloss
Protracteddefault
Due date
ManufacturingPeriod
•set credit limits •send invoices•declare turnover
•due date •apply internal credit management procedures
• declare over due (file a – ROD)
•stop further shipments
• start collection• submission of claim
180 days 30 days
waiting period
120 days
Maximum Extension Period
InvoicingPeriod
30 days2 months
• declare over due
Claim payment
HOW DOES IT WORK
Products offered to Exporters
• Standard Policy • Small Exporters policy• Specific Shipment Policy (short term)• Export Turnover policy• Specific buyer wise policy• Consignment export ( Stock holding agent)policy• Consignment export (Global entity) policy• Single buyer exposure policy• Multi buyer exposure policy• Software project exports policy• IT enabled (single customer) policy• IT enabled (multi customer) policy• SME Policy• Customer specific policy (Tailor made)
16
ECGC COUNTRY CLASSIFICATIONS
17
GroupOpen Cover
Restricted Cover
(Category I)
Restricted Cover
(Category II) Total
A1 63 0 0 63
A2 34 0 0 34
B1 38 1 1 40
B2 26 3 1 30
C1 37 11 4 52
C2 3 5 2 10
D 4 1 3 8
Total 205 21 11 237
EXPORT STIMULUS PACKAGE
• Additional cover of 5%, subject to maximum protection of 95% available for all MSME exporters
• All exporters of Textiles ( including handicrafts and handlooms), Gem & jewellery, leather, engineering goods, carpets, project goods, auto components and chemicals will also get the additional protection of 5%
• Additional cover through the National Export Insurance Account of the GOI
• Bank advances to MSME borrowers for exports will get an additional protection of 10% subject to maximum protection of 85% under the Credit Insurance covers to banks
18
IDEAL Advantage
• We are leading Broker in Credit Insurance.
• The expertise we have enables us to get the right policy with right coverage in time.
• We have special presence in Jewelers & Diamonds industry(Gold Star,RT Star, Ideal Jewels,S rasiklal, M Tarunkumar etc)
• No Hassel to exporters & all services at their door step that too without any cost.
19
20
Questions Welcomed !
Thank you