Glossary
Definitions
World Policy
Approved limit: Means the maximum amount covered for a Buyer under the Policy as specified in the Limit Endorsement issued by the Risk Service Provider.
Buyer: Means the legal entity which is legally responsible for the payment for the goods and/or services Despatched by you.
Cash against documents: Means payment against the presentation to the Buyer of the relevant commercial documents specified in the sale contract and where you retain control of the goods until full and effective payment is made to the bank or other authorised agents responsible for transmitting the documents to the Buyer.
Claim notification: Means our form by which you submit a claim to us and give authority to the Collection Service Provider in respect of a debt.
Collectable event: Means, in relation to any Buyer, the occurrence of any of the following or similar events:
(a) an unconditional dishonour or non-payment (meaning any advice of dishonour or non-payment from the paying bank with the exception of any advice stating “Refer To Drawer Please Represent” or its equivalent) of a cheque submitted by the Buyer;
(b) the dishonour or non-payment of a cheque immediately following an advice from the paying bank stating “Refer To Drawer Please Represent” or its equivalent in relation to the same cheque;
(c) your receipt of advices from the paying bank stating “Refer To Drawer Please Represent” or its equivalent in relation to 2 or more separate cheques in any 3-month period;
(d) any dishonoured, unpaid or returned direct debit;
(e) your receipt of any cheque from the Buyer post dated for a date beyond the Maximum extension period;
(f) any dishonour or non-payment of a bill of exchange, or the failure by the Buyer to accept and return a bill of exchange within 30 days of the invoice date or within 60 days of the date of the bill of lading where the goods are to be Despatched to an overseas Buyer.;
(g) any request by the Buyer to extend or reschedule the due date for payment of any debt beyond the Maximum extension period;
(h) the acknowledgement by the Buyer of cash-flow difficulties;
(i) any other circumstances arising that would lead a reasonable and prudent uninsured to believe that a Buyer is or may be unable to meet their payment or any other obligations owed to you under a legally valid and enforceable contract for the sale of goods and/or provision of services.
Collection Service Provider: Means the provider of the collection services specified in the Special Terms
Despatch or Despatched:
Means:
(a) with respect to goods:
(i) the goods have been passed to the first independent carrier for transport to the place where the Buyer is obliged to accept them; or
(ii) if there is no independent carrier, the goods have been deposited into the possession of the Buyer or a third party agent who agrees to hold the goods to the order of the Buyer;
(b) with respect to services, that the services have been carried out as contracted.
Discretionary limit: Means the maximum amount of a debt that may be covered under discretionary cover. The Discretionary limit is specified in the Special Terms.
Excess: Your Excess is of the amount and type as specified in the Special Terms.
Extension of due date: Means a written agreement between you and the Buyer under which you extend the originally agreed payment date.
Insolvency: Insolvency is defined in Article 3
Insured debt: Means the net amount owing to you from the Buyer provided that the Buyer is situated in the geographical scope of the Policy and as far as goods and services are Despatched during the Policy period. The Insured debt includes, where applicable, transportation, packaging, insurance and any taxes included in the original invoice with the exception of those taxes excluded in Article 6 (v). Any interest for late or non payment is expressly excluded of the insured debt, even when they have been agreed in the commercial operation. The Insured debt is restricted to the amount of either the Discretionary limit or the Approved limit, whichever is applicable.
Insured loss: Means the amount of an Insured debt that was subject to a Claim notification or its balance after taking into account the amounts listed in Article 5.01.
Insured percentage: Means the percentage stated in the Special Terms which is applied to the Insured loss for the calculation of the indemnity.
Limit request: Means a request by you to the Risk Service Provider for an Approved limit.
Limit endorsement: Means a written notification of a decision by the Risk Service Provider, whether in response to a Limit request from you or in order to amend, vary or cancel an existing Approved limit.
Maximum extension period: Means the maximum period specified in the Special Terms by which you can extend the original due date for payment of the Insured Debt.
Maximum terms of payment: Means the maximum contractual period that you may agree for payment from the Buyer of the Insured Debt. This period may be extended according to the provisions of Article 4.01.
Policy: Means the contract of credit insurance that we have agreed to issue to you including the General Terms and Conditions, Definitions, Special Terms and any other documents and/or endorsements and/or notices issued pursuant to or in connection with that contract.
Proposal: The proposal form, credit management questionnaire and any supporting documents, information and representations made by you or on your behalf before we agreed to issue the Policy.
Public buyer: Means a Buyer whose credit worthiness is considered equal to that of the State in the Buyer’s country, due to the statutory position of the Buyer or a commitment from the State of the Buyer’s country with regard to the financial support of the Buyer.
Risk Service Provider: Means the provider of the risk services specified in the Special Terms.
Special Terms: Means the terms specified in the schedule attached to the General Terms and Conditions.
State of default: Means the situation of a Buyer resulting from the earlier occurrence of:
1. An amount being overdue in excess of 30 (thirty) days from the original date (or where the due date for payment has been extended in accordance with Article 4.02, the extended due date), or
2. Insolvency
Waiting period: Means the relevant period specified in the Special Terms, which runs from the date of receipt of the completed Claim notification together with any additional documents or information that we or the Collection Service Provider requires.
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