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Trade Credit

Non-payment by a buyer through insolvency or protracted default on goods sold on credit terms.

Also calledTrade Credit Insurance · Credit Insurance

File/Claims library/Financial lines/Third-party and legal claims

First thing, todayStop further supply on the account and report the overdue within the reporting period the policy sets.

Three deadlines
  • Tell the insurer now, not after the assessment.
  • Admit nothing and settle nothing and pass every letter to the insurer the day it arrives.
  • Every document within the time the insurer asks for it.
A ledger open at an account, one line ruled through
A ledger open at an account, one line ruled through. An illustration.

When you would claim

  • A buyer's insolvency or liquidation
  • An invoice unpaid well past its due date
  • A buyer disputing an invoice to avoid payment
  • A credit limit exceeded on an account that then defaults

What insurers most often rely on

  • Supply continued after the account went overdue
  • Sales above the approved credit limit for that buyer
  • The overdue not reported inside the policy's reporting period
  • A genuine commercial dispute about the goods, which is not insolvency
  • Terms of sale different from those declared to the insurer

Each of those is a question about the record. The record answers it or it does not, and that is the whole of the argument.

The documents

it is an accounting file

10 items, and this is an accounting claim. What proves it is the record the loss ran through, not a description of the loss.

  • Claim form and the statement of account
  • Purchase orders, invoices and proof of delivery for each shipment
  • The credit limit approved by the insurer for that buyer
  • The overdue reports filed during the period
  • Correspondence chasing payment, and the buyer's replies
  • Insolvency filings or the liquidator's acknowledgement
  • Evidence of collection efforts and any recovery
  • Cancelled cheque and bank details in the insured's name, for the NEFT payment
  • Details of any other insurance covering the same risk
  • The unpaid invoices, the ledger extract, and the credit limit in force on the date of supply
The discovery dateAlmost every financial-lines wording runs its time bar from the date of discovery rather than the date of loss. Write down when it was found, by whom, and what was done that day.

Next

Liability Claim: The First Response, and what it shares with this

The liability playbook applies from the hour the notice arrives: acknowledge, admit nothing, and send it to the insurer the same day. Anything said to be helpful is said on the record.

Call 92514 56334

Read the limit of indemnity

No sum insured and no average clause. A liability policy is capped by its limit of indemnity, written as one figure for any one accident and a larger one for the year, with defence costs sometimes inside that limit and sometimes outside it. Which of the two it is matters more than the figure.

Filed under: Financial lines · Third-party and legal claims

Claims that sit next to this one

money, taken or owed

Fidelity Guarantee

money taken rather than money owed

Product Liability

the goods the buyer is refusing

Import and Export Cargo

the shipment that is not paid for

Had a notice and not replied to it yet? Report a loss or call 92514 56334.