Pre-post shipment insurance

To protect Qatari exporters from risks imposed by overseas buyers, Export Insurance provides two types of export credit insurance: pre-shipment risk cover and post-shipment risk cover, protecting exporters against commercial and political risks.
Credit Insurance Coverage up to
97%

RISK COVER

  • PRE-SHIPMENT RISK COVER: Coverage for exporter’s manufacturing costs against losses may occur due to order cancellation, before cargo is shipped

    This coverage is for Made in Qatar products, which protects you against loss of produce (direct or indirect) or when an order is cancelled before the goods are shipped. This is especially important for exporters producing custom-made products that may not be resalable or when you are obliged to discontinue production due to political or commercial risks in the importing country.

    Specifications and conditions:

    - Coverage begins from the date of contract signature or starting the manufacturing process and ends once goods are shipped
    - Coverage for political and commercial risks.
    - Coverage of up to 97% of the incurred manufacturing costs payable

     

    Terms and Conditions Apply

  • POST-SHIPMENT RISK COVER: Coverage of export receivables from a Single Buyer / Country

    Post-shipment risk cover protects you against the risk of an overseas buyer failing to pay for goods received on credit.
    It is intended to protect multiple transactions with repayment terms not exceeding 12 months.

    Specifications and Conditions:

    - Coverage starts once goods are shipped till payment is collected on due date.
    - Coverage for political and commercial risks
    - Coverage of up to 97% of the value of the payable.

    Terms and Conditions Apply

Frequently asked questions

Frequent asked questions
Takaful Insurance - Export Credit Cover for Pre-Shipment Risk

Pre-shipment Credit Insurance Policy is provided for protecting manufacturing costs incurred during the production phase against cancellation of order by Buyer or country before shipment of goods and / or services
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Qatari manufacturing or service providing companies doing exports.
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1. Exporter submits a request for credit limit on a Buyer, providing details of the contract.

2. QDB does a critical risk analysis on the Buyer, their sector, and the potential political risk in the importing country.
3. If the Buyer and the Country are acceptable risk, an offer letter is sent indicating the amount of credit limit, credit terms, premium rate, and percentage of cover.
4. If the offer is acceptable to the Exporter, he can submit an application for coverage for a contract from Buyer along with applicable premium amount and issuance fee.
5. The Policy is issued for covering the contract at the pre-shipment stage of manufacture.
6. The same process is to be repeated for issuance of Policy, for each subsequent contract from the Buyer
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An approved credit limit is the maximum insured amount, or maximum indemnifiable amount, per Buyer. It is valid for one year.
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1. Premium rate, per Buyer, is quoted according to the buyer's risk category, country specified risk and the period for manufacturing.
2. Premium amount is calculated on the value of the contract multiplied by the premium rate.
3. For example, if the premium rate is 0.60% and the value of the Contract is QAR 500,000, then the premium payable is 500,000 X 0.60% = QAR 3,000.
4. Policy issuance fees are also payable with a minimum of 250 QAR
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The validity of this Policy commences from the date of start of manufacturing process and ends on Shipment date for contract of delivery of goods.

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Frequently asked questions

Frequent asked questions
Takaful Insurance Policy - Export Credit Cover for Post- Shipment Risk

Takaful Export Credit Cover for Post-Shipment Risk Policy is provided for protecting the value of receivables against failure of a single buyer, after shipment.
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Qatari manufacturing or service providing companies doing exports.
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1. Exporter submits a request for credit limit on a Buyer, providing details of the Buyer.
2. QDB does a critical risk analysis on the Buyer, their sector, and the potential political risk in the importing country.
3. If the Buyer and the Country are acceptable risk, an offer letter is sent indicating the amount of credit limit, credit terms, premium rate, and percentage of cover.
4. If the offer is acceptable to the Exporter, he can submit an application for coverage for a shipment to an approved Buyer along with applicable premium amount and issuance fee.
5. The Policy is issued for covering the value of the receivable for a shipment against the failure of the buyer / country.
6. The same process is to be repeated for issuance of Policy for each subsequent shipment to the Buyer
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An approved credit limit is the maximum insured amount, or maximum indemnifiable amount, per Buyer. It is valid for one year.
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1. Premium rate per Buyer is quoted according to the buyer's risk category, country specified risk and the period for credit.
2. Premium amount is calculated on the contract value of the shipment multiplied by the premium rate.
3. For example, if the premium rate is 0.60% and the Contract Value for shipment is QAR 500,000, then the premium payable is 500,000 X 0.60% = QAR 3,000.
4. Policy issuance fees are also payable with a minimum of 250 QAR
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The validity of the Policy commences on the Shipment Date (in case of delivery of goods) or Performance Date (in case of performance of services) or earlier of Shipment Date or Performance Date in case of delivery of goods and performance of services are together in a Contract and ends on the due date of payment for the shipment covered.
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The maximum percentage of cover offered under this Policy is 97%.
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The Insured amount is arrived at by multiplying the Contract value with the percentage of cover. For example, if the Contract value is QAR 500,000 and the percentage of cover is 90, then the Insured amount is QAR 450,000.
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The non-payment from the Buyer is to be notified to QDB before the expiry of 30 days from the due date of payment for the shipment covered under the Policy.

in case of non-payment, credit limit is frozen and new shipments are not covered.
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The claim is to be filed with all the required mandatory documents before the expiry of 90 days from the due date of payment for the shipment covered under the Policy.
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The Claim becomes payable upon expiry of six months from the due date of the shipment covered under the Policy.
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Disclaimer

These FAQs are brought out for the general awareness of the Policy.  However, the General Terms and Conditions document should be referred to for understanding and compliance of all terms and conditions contained therein. For further details, if any, you may contact your Relationship Manager in QDB.

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