Policy Conditions
1 What is covered
1.1 Following Your proposal and in consideration of the
Premium We will pay You the insured percentage of the Insured
Debt less any applicable
deductibles in the event of:
• Insolvency
• Protracted Default
1.2 We may withdraw the cover given under this Policy
at any time by notice to You which will take immediate effect
unless it relates to a Bound
Contract. On a Bound Contract cover is extended by 3 months from the date of
the notice
or the end of the Policy Period whichever is the later. All Insured Debts up to
the date of the notice will continue to be covered.
1.3 If We withdraw cover You may at any time thereafter
end the Policy and We will refund Premium for the unexpired
part of
insurance on a time on risk basis less the termination charge stated in the
Certificate of Insurance. If You
decide
to end the Policy and an event of Insolvency or Protracted Default occurs after
the end date We will not pay
claim
amounts arising from these events.
2 What is not covered
2.1 We do not cover debts:
• that exceed the Sum Insured
• arising after the Sum
Insured is withdrawn unless cover is extended on a Bound Contract
• where the terms of payment
exceed 4 months from Goods Delivered or Services Provided
• where the debt is incurred
prior to the Policy Period
• where the invoice is not
raised within 1 month of delivery of goods or services
• that are Disputed Debts
• arising after Insolvency,
Protracted Default or a Notifiable Serious Event
2.2 We do not cover Pre-Delivery Costs more than the
period stated in the Certificate of Insurance prior to the Agreed
Delivery
Date.
2.3 Standard Exclusions are not covered as they are
outside the scope of this Policy.
3 Your obligations
3.1 You must comply with the Policy Conditions.
3.2 You must take reasonable care in granting credit to
the Buyer and You should not materially vary Your credit control
procedures or change Your
terms of payment from those used at the time of making Your Proposal unless
with Our written
agreement.
3.3 You must raise invoices within 1 month of delivery
of goods or provision of services unless We agree otherwise in
writing.
3.4 You must advise Us immediately in writing if You
become aware of Insolvency, Protracted Default or a Notifiable
Serious Event in relation to
the Buyer and where legally or contractually or commercially possible stop
further supplies
of goods and provision of services to the Buyer.
3.5 You must take all reasonable steps to mitigate any
loss. If required You will execute any documentation or do
anything necessary to enable
Us to be directly involved in the recovery of the Insured Debt.
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SC Trader - 9/2011 |
4 Claims
4.1 When You notify Us of an event of Insolvency or
Protracted Default You must tell us the amount of Insured Debt and
within 1 month of the
Insolvency or Protracted Default submit the claim on the form supplied by Us
and provide any further information or records required by Us.
4.2 We will pay approved claims caused by Insolvency
within 7 days of Our receipt of Your completed claim form and
supporting documentation.
4.3 We will pay approved claims caused by Protracted
Default:
• within 3 months of the due
date for payment of the Insured Debt if court proceedings have been issued or
the Buyer’s
members pass a resolution to wind the company up voluntarily
• within 3 months of the due
date for payment of the Insured Debt when passed to Our recommended debt collection agency
• within 6 months of the due
date for payment of the Insured Debt when passed to a debt collection agency
other than the
one We recommend
4.4 You must submit claims in pounds sterling and
convert export Insured Debts to sterling at the exchange rate
applicable on the date the
Insured Debt fell due.
4.5 Claim amounts paid or payable by Us under this
Policy shall be reduced by any salvage, recovery, distribution and/or
claim
against other insurances and guarantees obtained by You.
4.6 You may assign payment of Your approved claims to
Your bank or financier by written notice to Us.
5 General conditions
5.1 Your proposal forms the basis of this Policy. If
any statement or fact made in the proposal is untrue or incorrect then
We will
not be obliged to pay claims.
5.2 You must have disclosed and continue to promptly
disclose any circumstances that may affect the risks covered by
the Policy.
5.3 Clauses 3.2, 4.1 and 5.2 are condition precedent to
Our liability.
5.4 This Policy operates in pounds sterling.
5.5 You must allow Us and Our representatives to
inspect and take copies of any of Your documents and records which
relate
to this Policy.
5.6 You must comply with the Data Protection Act
Requirements.
5.7 We may end this Policy immediately:
• without notice if You
become insolvent
• with notice if You break
any Policy Conditions
5.8 We will not be liable in the event of:
• war, invasion, act of
foreign enemy or civil war
• strikes, riots, social or
political disorder
• terrorism
• political risks
• the effects of radiation,
explosion, or other hazard / contamination arising from nuclear sources
5.9 We will not be liable for any taxes and duties
arising out of this Policy.
5.10 This Policy is governed by English Law and the
non-exclusive jurisdiction of the English courts.
5.11 Where the context requires words denoting the
singular shall include the plural and vice versa.
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SC Trader - 9/2011 |
6 Definitions
6.1 Agreed
Delivery
Date
6.2 Bound
Contract
6.3 Buyer
6.4 Data
Protection Act
Requirements
6.5 Disputed
Debt
6.6 Goods
Delivered
6.7 Insolvency
6.8 Insured
Debt
6.9 Notifiable
Serious
Event
6.10 On Stop
Date
6.11 Policy
the date You agreed to
deliver goods or provide services to the Buyer under a contract of sale
a contract of sale between
You and the Buyer where except for legal reasons, contract conditions or commercial
practice You are unable to discontinue supplies or services or terminate the contract of
sale
the business named in the
Certificate of Insurance
if the Buyer is a sole trader
or partnership You must obtain its consent to providing Us with its personal
data so We may process this personal data fairly and lawfully. You must advise them that:
• We may keep a record of the
personal data and it may be passed by Us to Our other
customers
• We may pass this personal
data to credit reference agencies and information providers,
insurance companies,
intermediaries and agents and they may keep a record of it and
pass it to their customers
• the personal data will be
used for credit risk assessment and insurance and other related
purposes
• We may supply You with
personal data We have obtained on them from sources other
than You
a debt that is disputed or is
from an unresolved dispute where agreement remains outstanding 12 months from
the original due date for payment
goods supplied under a
contract of sale between You and the Buyer not later than 9 months from the On
Stop Date the Buyer:
• has a bankruptcy order made
against it
• is unable to pay its debts
as they fall due and has made a binding arrangement with
its creditors
• has an administrator
appointed by the court, itself or its directors or a qualifying
charge holder
• has a winding up order made
by the court
• has a resolution passed by
its members to wind up the company
• has an administrative
receiver appointed
• has a liquidator appointed
under a creditors voluntary or a compulsory liquidation the amount owed to You
by the Buyer not more than the Sum Insured:
• for Goods Delivered or
Services Provided during the Policy Period
• Pre-Delivery Costs
• related and properly
claimable statutory interest the Buyer:
• has issued a financial instrument or payment instruction
which has subsequently been
dishonoured (unless this is
caused by administrative error)
• has requested an extension
and/or rescheduling of payment of any debt due to You
beyond the On Stop Date
• has had public notices
issued relating to impending matters of Insolvency
• has failed to pay debts
exceeding 10% of the Sum Insured within 30 days of the
On Stop Date
the date You would normally
stop delivering goods or supplying services due to non payment of any debt as
stated in Your proposal
Your credit insurance
contract with Us comprising Policy Conditions and Certificate of Insurance
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SC Trader - 9/2011 |
6.12 Policy
Period
6.13 Pre-Delivery
Costs
6.14 Premium
6.15 Protracted
Default
6.16 Services
Provided
6.17 Standard
Exclusions
6.18 Sum
Insured
6.19 We or Us
or Our
6.20 Work In
Progress
6.21 You or
Your
the period stated in the
Certificate of Insurance
costs incurred by You
between the date of the contract of sale and Agreed Delivery Date for which the Buyer is liable
under the contract of sale excluding overheads profit and damages for breach of contract and
can include:
• preparation prior to the
physical manufacturing process
• purchase of goods by You
for onward sale to the Buyer
• Work in Progress costs
incurred in manufacturing
• stock awaiting delivery
• delivery costs
the amount stated in the
Certificate of Insurance the Buyer:
• is in default due to
non-payment of the Insured Debt by the due date where there is no
dispute and You have issued
court proceedings or passed the debt to a debt collection
agency not later than 9
months from the On Stop Date
• or its members pass a
resolution to wind up the company voluntarily not later than 9
months from the On Stop Date
services given or work
executed under a contract of sale between You and the Buyer VAT, cash sales and sales
where You hold a confirmed letter of credit
the amount stated in the
Certificate of Insurance which is the maximum amount We will pay You in respect of all
approved claims. If You have outstanding debt that is covered under a previous Policy the amount
under this Policy will be reduced by the outstanding debt or the Sum Insured
under the previous Policy whichever is the lesser
HCC International Insurance
Company PLC
labour and material costs
incurred in manufacturing the goods (including specific materials stored ready
for the manufacturing process)
the Insured(s) named in the
Certificate of Insurance
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