Export Import Legal Summit Insurance
Settlement Of International Trade Disputes With Insurance Company
There are two types of insurance in INTERNATIONAL BUSINESS.
- CREDIT INSURANCE offered by CREDIT INSURANCE COMPANY
- MARINE INSURANCE offered by any GENERAL INSURANCE COMPANY
DISPUTES WITH CREDIT INSURANCE COMPANIES:
Credit insurance in India is covered by one apex government company named ECGC (EXPORT CREDIT GUARANTEE CORPORATION OF INDIA) which covers the exporter against the default of the counter part in the business especially importer. There are other roles and functions also of ECGC covering others like banks etc but it is beyond the discussion of this course.
Due to stringent market competition, EXPORTER has to face so many challenges for PAYMENT TERMS. Sometimes, he is forced to accept compromised types of PAYMENT TERMS in which risk of default is much more and payment realization is at stake. Default of exporter is not a loss to him only but it is also a loss to nation. CREDIT INSURANCE COMPANY tries to safeguard exporter by paying him back 80 to 85% of their FOB invoice value and keeps the record of such defaulter overseas importer so that CREDIT INSURANCE COMPANY can safeguard other exporters against acceptance of such risky payment terms with same defaulted overseas parties.
After default of overseas importer when exporter contacts CREDIT INSURANCE COMPANY, it is not always a welcome invitation. CREDIT INSURANCE COMPANY scrutinizes all nooks and corner how to find the mistake on part of especially exporter so that CREDIT INSURANCE COMPANY can repudiate the claim. In case of negation, the whole issue goes in the COURT OF LAW.
DISPUTES WITH MARINE INSURANCE COMPANIES:
Second types of disputes are disputes with Marine Insurance offering companies / General Insurance. Exporter tries to safeguard their cargo during voyage. When damage or mis-appropriation to their cargo occurs, they tries to claim the insurance company which is repudiated by the insurance company many a times genuinely or in a fraudulent way to avoid payment to the exporter / importer. Repudiation of the insurance claim drags the issue in the court of law and cases are contested there.
Cases with Credit Insurance Companies and Marine Insurance Companies are rich sources for EXIM COMMUNITY to learn what to do and what not to safeguard their interest and avoid repudiation of the clam.
WE TRY TO DEAL WITH SUCH CASES IN THIS COURSE CONTESTED IN DIFFERENT COURTS.
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