These are specialized insurances - and designed to protect the Insured- mainly Companies
against the risks of the buyer's insolvency or default.
Comprehensive changes in the international political landscape and widespread market
deregulation have made trade the driving force in our worldwide economy. But increasing
sales and building new customer relationships can leave balance sheets vulnerable.
Economic downturns, privatization of public entities and inconvertibility or non-transfer
of currency can leave your customers unable to pay what they owe. And often by the
time customer face insolvency or credit loss
Credit Insurance Provide cover when the amount becomes a bad debt due to reasons
such as insolvency/default of the buyer, political disturbances in the country goods
have been exported to, change of government and regulations, which prevents the
seller/supplier from receiving the amounts due to him
All Corporate engaged in Exporting of goods and services can protect themselves
by Credit Insurance.
Loss of Profits Insurance (LOP)
This policy provides the cover the financial loss arising from the interruption
in the business activity due to physical loss of the property by an event covered
for insurance. The LOP insurance can be categorised in FLOP (Fire loss of Profit)
& MLOP (Machinery loss of Profit) .The insurance is to be taken for a sum equivalent
to the loss of gross profit during in the period of interruption envisaged for the
restoration of the property damaged by the event covered for insurance. The insurance
will also cover the increased cost of working in maintaining the revenues/turnover
besides the reduction in gross profit.
This insurance is given only if there is a basic Fire and allied Perils Policy and/or
Machinery Breakdown Policy, which covers the Material Damage of the asset insured.
The admission of a claim under the material damage policy is a prerequisite for
admission of a claim under the LOP Policy.
Fidelity Guarantee Insurance
This policy reimburses for direct financial loss due to acts of fraud or dishonesty
or forgery or embezzlement committed by any of the Insured's employees in connection
with his/her profession during the uninterrupted continuance of employment.
Cash in Transit
The policy provides cover against loss of money in transit whilst being carried
as described in the policy by the Insured or Insured's authorized employee(s), occasioned
by robbery, theft or any other fortuitous cause. It also covers loss by burglary
of house breaking whilst money is retained at Insured's premises, in safe(s) or
Organizations can take this policy for cash carriage from or to banks, while in
transit from one branch to other branch.