Bharti Axa General Insurance has tied up with Coface South Asia Pacific to launch a trade credit insurance product for the Indian market.

 

The product will cater to both domestic and overseas trade credit requirements of enterprises. The coverage is provided up to 90 per cent of the invoice value and covers losses due to insolvency of a buyer, non-payment or protracted default by a private buyer, political risks such as war or riots, government measures that prevent performance of contractual obligations and cancellation of import licence, among others.

 

While Coface will provide the technical expertise in terms of structuring and pricing of the product, Bharti Axa will sell the product leveraging its distribution network.

 

Dr Amarnath Ananthanarayanan, Managing Director and CEO, Bharti Axa, said the company will try to cross-sell the trade credit insurance product to its existing customers along with policies like marine insurance and product liability.

 

The Indian trade credit insurance market is estimated at $50 million.

 

Coface has an internal debt collection department which can collect from non paying debtors, said Mr Jean-Claude Speitel, Regional Managing Director of Coface South Asia Pacific.

 

Coface has already tied up with Indian general insurance companies like IFFCO Tokio and ICICI Lombard for this product.