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ECIC protects Hong Kong exporters against non-payment risks arising from commercial and political events. |
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Except for countries under UN sanction, ECIC covers over 200 countries all over the world. |
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ECIC is not liable for losses arising from buyer risks in relation to in-house transactions. However, cover can be provided with respect to country risks. |
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Yes. ECIC has long been providing export credit insurance in mainland China. However, under the one-country-two-systems concept, ECIC treats mainland China as a separate market. |
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ECIC is ready to consider medium-term projects lasting two to three years or longer on a case-by-case basis despite the fact that over 90% of its insurable business are concentrated on short-term business with usance period of up to 180 days. |
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ECIC has a database of over 70,000 buyers and has on-line connections with a number of credit information agencies all over the world. It can therefore approve a credit limit within one or two days provided it has the required information on the buyer concerned. However, approval can take longer if it has to obtain information from credit agencies abroad as it can take anywhere from a few hours to weeks before a reply is received owing to the prevailing conditions in the country concerned. |
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ECIC is not liable for loss if goods shipped under DP payment terms have been released to the buyer before payment and if the Policyholder holds a credit limit based on DP terms only.
There are cases when the buyer may obtain the goods before payment. These include air freight shipments; DP usance bill where the credit period exceeds the normal duration of the sea transit; the Policyholder mails one copy of the bill of lading to the buyer and the buyer takes delivery of the goods before he pays for them even though payment terms are DP. To ensure ECIC protection in the above cases, the Policyholder is strongly advised to obtain credit limits on OA terms and to declare shipments on OA terms.
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Please contact us immediately for an increase in the credit limit. If we are unable to provide an increase in the credit limit, you may wish to consider whether or not to execute the order by stages. In case of claims, ECIC is only liable for the amount of the credit limit approved. |
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Premium rates vary from Policyholder to Policyholder depending on their portfolio of risk, such as buyer, country, length of credit, size of turnover, etc. In general, the overall average premium rate is 0.49%. |
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10. |
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ECIC undertakes to indemnify up to 90% of the losses. |
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11. |
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As a general rule, claims are paid: |
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as soon as practicable in cases of solvency or bankruptcy of buyer; |
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four months after the due date for payment in cases of protracted default in payment; |
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as soon as practicable after the resale in cases of repudiation; |
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four months after the deposit in local currency or four months after the due date for payment, whichever is the later, in cases of delays in transfer of payments; and |
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four months after the event that caused the loss provided the amount of loss has been established in cases of any other event. |
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12. |
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ECIC cannot pay the claims until the disputes are resolved by agreement, legal proceedings enforceable in the buyer's country, or in any other way agreed by the parties. ECIC has numerous contact persons in overseas markets who can assist the Policyholder in resolving trade disputes.
ECIC cannot indemnify a Policyholder if he/she caused the loss. But provided ECIC is reasonably assured that the Policyholder executed the contract of sale correctly, ECIC will admit liability and arrange for payment. It is not uncommon that some buyers instigate disputes to avoid paying.
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