Credit Insurance Coverage up to
97%
Pre-Shipment
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.
Pre-Shipment
Product Features & Terms:
- 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.
Frequently Asked Questions
What is Pre-shipment?
Pre-shipment 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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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 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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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 the cost of this insurance?
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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What is the validity term of the pre-shipment?
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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What is the insured amount?
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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When is the non-payment from the buyer to be reported to QDB?
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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When the 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 covered under the Policy.
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When the claim becomes payable under this policy?
The Claim becomes payable upon expiry of six months from the due date of the shipment covered under the Policy.
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Similar Pages
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