CREDIT RISK INSURANCE:

Credit Insurance provides a business with protection against failure of its customers to pay their debts. Like any form of insurance, Credit Insurance is purchased to protect a business from a large loss that could impair its performance.

Despite a company's best efforts, large or catastrophic losses occur due to:

• One large long-term buyer unexpectedly failing.

• A significant change in the market (or economy) where a number of buyers become distressed and are unable to meet their obligations in time.

• A sudden shift in the political or economic conditions of a buyer's country (exports).

Credit insurance is a risk management tool that can help protect the company's commercial accounts receivable from the devastating effects of loss caused by the insolvency or protracted default of the buyers.

What is covered?

1. Declared Insolvency of your buyer, i.e. The buyer is declared bankrupt.
   ·He has made a valid assignment/composition/arrangement for   the benefit of his creditors.
   ·A receiver has been appointed
   ·Order has been made for compulsory winding up.
   ·An effective resolution has been passed for voluntary winding up.
   ·An arrangement binding on all creditors has been sanctioned by the court or "equivalent conditions".

2. Protracted Default. Protracted default is the non-payment for (specified number of) days after the expiry of the due date for payment, of any undisputed invoice submitted by the insured (supplier) to his buyer.

3. Political Risks (For Exports only) Political risk is the risk undertaken on non-payment of the buyer caused by a political act such as war or civil war, sabotage, embargo, cancellation of import/export contracts and imposition of import/export restrictions. 

FIDELITY GUARANTEE INSURANCE
This policy is suitable for employers to cover the infidelity (dishonest acts) of employees occupying positions of trust involving duties such as handling cash, storekeeping etc. Persons holding positions of trust where scope for misappropriation is more may require this policy. The coverages of the policy provide comfort to both-the employer and the employee. 
The policy indemnifies an employer against losses sustained by him as a result of dishonesty or fraud committed by an employee during the course of employment. 

What is covered?
· The policy covers pecuniary loss sustained by the employer caused by any act of fraud or dishonesty committed by the employee in connection with his employment, during employment.
· Policy covers infidelity that includes forgery, embezzlement, larceny, misappropriation and default. 

Who can take this policy?
This policy is suitable for employers to cover the infidelity of employees occupying positions of trust involving duties such as handling cash, storekeeping etc