Credit Insurance Coverage up to
90%
Post-Shipment Risk Cover – Whole Turnover (WTO)- Simplified
(Annual Export Turnover less than QAR 5 million)To protect Qatari exporters against the risk of all approved overseas buyers failing to pay. It is intended for SMEs with Annual Export Turnover less than QAR 5 million.
RISK COVER
Coverage for export receivables portfolio from multiple buyers / multiple countries, worldwide.
Coverage
Post-shipment risk cover protects against the risk of all approved overseas buyers, failing to pay for goods received on credit. It is intended to protect multiple transactions, effective for a period of one year, with repayment terms not exceeding 12 months. Under the Simplified Policy, SMEs can choose among 5 Grades, depending on their projected annual export turnover ranging between QAR 200,000 to QAR 5 Mn.Major obligations of Exporters
-Remit the requisite premium, in advance, as per the Grade chosen, before the policy issuance
-Request for Credit Limits on each buyer
-Cover starts after approval of credit limit.
-Migrate to higher grade, if required, with payment of differential pro-rata premium in advance
-Notify the non-payment from the buyer within 30 days from the original due date
-Subject to the General Terms and Conditions of PolicySpecifications
-Coverage up to 90% of the face value of the invoices, subject to the approved credit limit amount on Buyers
-Coverage starts once goods are shipped till payment is collected on due date.
-Coverage for political and commercial risks, subject to a valid credit limit decision on each BuyerRequired documents
-Purchase order(s) / confirmation of order(s)
-Contracts
-Invoices
-Evidence of collection actions, including dunning process correspondences, letters of demand and correspondence with any debt collection agencies or lawyers
-A letter from the Insured to the Buyer notifying him of legal actions if the amount is not paid
-Details of any steps taken to enforce any collateral
-Confirmation of the insolvency of the buyer (e.g., a court decision)
-Details of any down payments received from the buyer or any other third party
-Certificate of Origin -Delivery Note(s)
-Transport documents (e.g., bill of lading, air waybill, consignment, notes, discharge receipts, mate’s receipts, export and import licences and insurance documents
-The insured’s trading history with the buyer in the past 12 months from the earliest outstanding receivable
Frequently asked questions
Frequent asked questions
Takaful Whole Turnover (WTO) – Simplified Credit Insurance Policy
What is Takaful Whole Turnover (WTO) – Simplified Credit Insurance Policy?
Takaful Whole Turnover (WTO) – Simplified Credit Insurance Policy is provided for protecting export receivables portfolio from multiple buyers / multiple countries, worldwide. It covers against non-payment from the foreign buyer(s) due to insolvency, default and / or certain political risks.
This Policy is a cost-effective package and best suited for small and medium sized Exporters (SMEs) having an Annual Export Turnover of less than QAR 5 million
This Policy is a cost-effective package and best suited for small and medium sized Exporters (SMEs) having an Annual Export Turnover of less than QAR 5 million
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Who is eligible to apply for this Policy?
Qatari manufacturing or service providing companies doing exports.
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How does this Policy Work?
1. Exporter submits a request for the Policy, choosing the Policy Grade, through QDB Digital Portal, providing the details of the Exporter.
2. Exporter submits requests for credit limits for at least Two Buyers, providing details of the Buyers.
3. Exporter accepts the General Terms & Conditions of the Policy and pays Administration Fee of QAR 100 (for <= 5 buyers) or QAR 250 (for > 5 Buyers)
4. QDB does a critical risk analysis on the Buyers, their sector, and the potential political risk in the importing countries.
5. If the Buyers and the Countries are acceptable risk, a “Credit Limit Decision” communication is sent to Exporter, indicating the amount of credit limit, credit terms, and percentage of cover, for each Buyer.
6. Premium Notification is issued to Exporter to pay the applicable annual premium as per the Policy Grade chosen by the Exporter.
7. Upon receipt of annual premium, the Policy is issued to the Exporter for a period of One Year for covering the shipments to be made to the approved buyers, during this period of One Year.
8. Exporter is free to add Buyers during the duration of Policy.
9. It is not mandatory to declare the shipments made to the approved buyers.
2. Exporter submits requests for credit limits for at least Two Buyers, providing details of the Buyers.
3. Exporter accepts the General Terms & Conditions of the Policy and pays Administration Fee of QAR 100 (for <= 5 buyers) or QAR 250 (for > 5 Buyers)
4. QDB does a critical risk analysis on the Buyers, their sector, and the potential political risk in the importing countries.
5. If the Buyers and the Countries are acceptable risk, a “Credit Limit Decision” communication is sent to Exporter, indicating the amount of credit limit, credit terms, and percentage of cover, for each Buyer.
6. Premium Notification is issued to Exporter to pay the applicable annual premium as per the Policy Grade chosen by the Exporter.
7. Upon receipt of annual premium, the Policy is issued to the Exporter for a period of One Year for covering the shipments to be made to the approved buyers, during this period of One Year.
8. Exporter is free to add Buyers during the duration of Policy.
9. It is not mandatory to declare the shipments made to the approved buyers.
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What is an approved Credit Limit on the Buyer?
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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What is “Policy Grade” under Whole turnover (WTO) Simplified Policy?
1. Exporters can choose one among Five Grades namely Tiny, Micro, Small, Medium and Premium under this Policy.
2. Each Grade has its own pre-defined annual premium and risk cover range.
3. The annual premium, as indicated in the Matrix below, needs to be paid in advance, before issuance of the Policy
4. Maximum Liability is the aggregate amount of claim payable cap, in a Policy Year
5 .Exporters can migrate to higher grade, with pro-rata additional premium, payable in advance.
Policy Grade, Premium and Maximum Liability Matrix
2. Each Grade has its own pre-defined annual premium and risk cover range.
3. The annual premium, as indicated in the Matrix below, needs to be paid in advance, before issuance of the Policy
4. Maximum Liability is the aggregate amount of claim payable cap, in a Policy Year
5 .Exporters can migrate to higher grade, with pro-rata additional premium, payable in advance.
| Grade | Annual Premium QAR | Maximum Liability QAR | Maximum Estimated Annual Export Turnover QAR | Maximum Credit Limit amount, per buyer QAR | |
| Tiny | 800 | 20,000 | 200,000 | 10,000 | |
| Micro | 2,000 | 50,000 | 500,000 | 25,000 | |
| Small | 4,000 | 100,000 | 1,000,000 | 50,000 | |
| Medium | 10,000 | 250,000 | 2,500,000 | 125,000 | |
| Premium | 20,000 | 500,000 | 5,000,000 | 150,000 |
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What is the validity term of this Policy?
The validity term of the Policy is One Year.
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What is the maximum % of cover offered under this Policy?
The maximum percentage of cover offered under this Policy is 90.
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What is Insured amount?
The Insured amount, per Buyer, is arrived at by multiplying the outstanding value of the shipment(s) with the percentage of cover, subject to the approved Credit Limit amount on the Buyer.
Example -1
Example -2
Example -1
| A | Outstanding value of shipment(s), per Buyer | QAR 500,000 |
| B | Percentage of Cover | 90 |
| C | A X B | QAR 450,000 |
| D | Approved Credit Limit amount on the Buyer | QAR 400,000 |
| E | Insured Amount (Lower of C and D) | QAR 400,000 |
Example -2
| A | Outstanding value of shipment(s), per Buyer | QAR 400,000 |
| B | Percentage of Cover | 90 |
| C | A X B | QAR 360,000 |
| D | Approved Credit Limit amount on the Buyer | QAR 400,000 |
| E | Insured Amount (Lower of C and D) | QAR 360,000 |
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When is the non-payment from the Buyer to be reported to QDB?
The non-payment from a 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.
in case of non-payment, credit limit is frozen and new shipments are not covered.
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When a Claim is to be filed?
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(s) covered under the Policy.
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When a claim becomes Payable under this Policy?
The Claim becomes payable upon expiry of six months from the due date of the shipment(s) 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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