GUIDELINES FOR POLICY MANAGMENT
Please see below the main guidelines for policy management, in order to maintain your policy rights.
The insurance policy is a comprehensive policy for all credit sales, and therefore you must send all buyer's credit exposures for ICIC’s examination.
Compliance with credit cover conditions
- It is necessary to verify that the agreed terms of payment with the buyer do not deviate from the maximum number of days of credit specified in the credit cover.
- Collateral security must be obtained from the buyer if such collateral is required under the credit cover.
The following four rules must be stringently adhered to:
- A monthly report must be made about all credit sales to buyers for whom a credit application has been approved or is examined by ICIC. The monthly shipments declaration is the action which activates the insurance, therefore only sales that have been reported as required will receive insurance cover.
- The report must be made of the full extent of the shipments to every customer, even if the amount of the shipment is higher than the amount of the approved cover.
- In the declaration of shipments a report must be made about the full overall extent of the sales in that month, and no credits or set-offs which relate to invoices from previous months must be deducted.
- It is necessary to report shipments in the currency of the sale.
Reporting on arrears
The following clauses must be rigidly adhered to:
- Report must be made about any arrears in the customer’s payment that is in excess of the number of days specified in Appendix A (under the paragraph “Reports by the Insured”).
- It is necessary to report immediately about any check that was not met on the due date, including reports about checks that have been returned due to insufficient cover, technical fault, a buyer’s request to replace checks and/or for postponing the date of deposit, and checks that have been received with a due date of payment which is later than the date that was agreed.
Handling of debt in arrears
- Any debt rescheduling arrangement with the buyer necessitates the obtaining of our prior written approval.
- Steps must be taken to collect and recover any debt that is in arrears, in coordination with us.