Almost 50% of domestic B2B sales are made on credit terms that average around 30 to 45 days. Usually, 10% of invoices remain overdue over 90 days. The proportion of uncollectable receivables has increased mainly due to liquidity concerns. It has been observed that payment delays greater than 3 months and the value of uncollectable receivables in India is well above the Asian average.
The policy has been designed to cover insured against the commercial risks of their buyer’s default. Under this policy we will cover the portfolio of buyers and pay an agreed percentage of an invoice or receivable that remains unpaid as a result of covered causes of loss. The causes of loss covered under this policy are: