Trade Credit Insurance

Objectives

Trade Credit Insurance is insurance that provides protection to Seller against the risk of failure payment from Buyer in an export transaction or export support activity and you will feel safe in carrying out business activities or entering new markets.

Insured Criteria

• Business entities including individuals, including newly established/start-up business entities that carry out direct export activities, indirect exports, export support activities and/or other activities in order to increase the competitiveness of Indonesian products and follow trade developments international;
• Bank/Non Bank Financial Institutions.

Buyers Criteria

• Buyer has experience in running a business for at least 2 years.
• Buyer is not affiliated or not a subsidiary of the Insured.
• Buyer has no claim history at LPEI unless the Buyer has made subrogation payments to LPEI and there is no other negative information.

Risks Covered

Commercial risks and political risks with provisions in the Global Trade Credit Insurance Policy.

Coverage Period

12 (twelve) months or can be extended.

Currency

Rupiah or currency approved by Indonesia Eximbank.

Fees/Costs

• Issuance
• Policy
• Duty Stamp

Document Requirements

Application Letter which includes minimum information, including;

• Insured Data;
• Buyer Information (buyer name, address, payment terms, estimated sales, and estimated credit limit);
• Sales History Information;
• Loss Information; and/or
• Credit Management Information;
• Prospective Insured company profile and Deed of Establishment and other permits according to business field;
• Other Data if any, for example:
  • Financial Data and Information of Prospective Insured (at least in-house financial reports);
  • Information on existing policies with previous insurance companies;
  • Claim information;
• Card / Aging Buyer Receivables.