Credit insurance, also known as trade credit insurance, is a type of insurance that protects businesses against the risk of non-payment by their customers for goods or services sold on credit terms. This insurance can provide coverage for both domestic and international trade transactions.
The main objective of credit insurance is to safeguard businesses from the financial impact of non-payment by customers due to insolvency, bankruptcy, protracted default, or political risks such as war or civil unrest. With credit insurance, businesses can be assured that they will receive payment even if their customers are unable to pay.
Credit insurance can also provide businesses with access to information about the creditworthiness of their customers, which can help them make better credit decisions and reduce the risk of non-payment. In addition, credit insurance can help businesses secure financing and trade credit from banks and other financial institutions, as it provides a guarantee of payment.
There are many different types of credit insurance policies available, each with different levels of coverage and terms. It is important for businesses to carefully evaluate their risks and choose a policy that provides the appropriate coverage for their needs.
Some of the prominent players in the trade credit insurance market in India include:
1. Export Credit Guarantee Corporation of India (ECGC)
2. Tata AIG General Insurance
3. HDFC ERGO General Insurance
4. ICICI Lombard General Insurance
5.Bajaj Allianz General Insurance
6. Cholamandalam MS General Insurance
7. SBI General Insurance
8. Bharti AXA General Insurance
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