Credit Insurance Coverage
Fengya in collaboration with China Export & Credit Insurance Corporation (Sinosure) renders export credit insurance service that covers up to 120 days of OA payment period, so as to guarantee the safety of money payment. Once the insurance becomes effective, Fengya will assist in claiming for indemnity throughout the process, the enterprise is entitled to get the maximum 90% of the insured amount as indemnity.
Q: What is the insurance coverage provided by Sinosure?
A: Sinosure’s insurance coverage:
① Commercial risk – Buyer goes bankrupt or becomes insolvent; buyer delays the payment for goods;
② Political risk – The country or region where the buyer is located bans or restricts the buyer from paying for goods to the insured; bans the buyer from importing goods or revoke the import license that has been granted to the buyer; there is a war, civil war or riot that results in a failure of buyer to perform the contract; the third country through which the buyer has to makes payment issues the deferred payment order.
Q: What is the maximum amount indemnified by Sinosure?
A: After an enterprise purchases Sinosure’s export insurance, once the insurance becomes effective, Sinosure will indemnify the enterprise against the maximum 90% of the insured amount. (The insured amount must be within the buyer’s credit line)
Q: How much is the Sinosure’s insurance premium?
A: Sinosure’s insurance premium may vary in country, region and payment period. Equation for premium: Insurance premium=Export amount specified in the customs declaration*Premium rate.
Q: What if the buyer refuses to pay after the expiry of OA payment period?
①Recourse payment for goods: Under normal circumstances, overseas buyer will make payment in accordance with the payment method signed on PO. If the buyer refuses to pay after the expiry of OA payment period, Fengya may recourse money from the overseas buyer through Sinosure after confirming with the enterprise.
②Sinosure indemnity: Fengya will assist Sinosure in carrying out the credit investigation by issuing the relevant trading documents. If the trading background turns out to be true and accurate through investigation, and there is no default by seller, Sinosure will indemnify the maximum 90% of the factory’s insured amount.
③Buyer’s credit records: If the overseas buyer fails to pay as per the order, after Sinosure makes a claim, the buyer’s dishonesty will be permanently recorded into the buyer’s credit system, any domestic company may inquire the buyer’s dishonesty record through Sinosure, and Sinosure can hardly approve any credit line to such disputed overseas buyer, which may directly affect its subsequent transaction.
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