- Insolvency of the buyer/ Issuing bank.
- Failure or refusal of the buyer to pay.
- Refusal of the buyer to accept goods after shipment.
- Cancellation of the contract arbitrarily by the buyer.
- Currency transfer restrictions of the buyer's country / issuing bank's country.
- Expropriation by the government of the buyer.
- War or civil disturbance in the buyer/ issuing bank's country.
- Protects balance sheet against non-payment of export receivables.
- Enhances the competitiveness.
- Increases international sales by offering flexible payment terms to overseas customers.
- Offers to customers open account credit terms while protecting the insured against credit risk.
- Accesses increased working capital facilities from banks by assigning the insurance policy to the banks as security.
- Nationals of a Member Country.
- Corporations or other juridical entities located in ICIEC member countries or owned at least 50% by the IDB or by a Member Country if located in NonMember countries.
- Goods should have at least 20-30% value added from one or more Member Countries.
- In case of capital goods or strategic commodities, the above criteria are not applicable. However, the buyer should be in a member country.
- Goods not prohibited by Islamic Shariah.
TENOR OF COVERUp to 7 years
HOW IT WORKS
- Exporter enters into a sale contract with importers
- The exporter includes an insurance contract with ICIEC and pays premium
- The exporter ships the goods to the buyers and declares the shipments to ICIEC
- In case one of the buyers fail to pay, the exporter submits a claim to ICIEC which indemnifies the exporter up to 90% of the contract value
- ICIEC recovers from the buyer and pays 10% share to the exporter