How can I maximise my claim payout?

How can I maximise my claim payout

Here are 7 tips to make sure your claim is successful

 

Tip Why
1. Always trade within your Maximum Extension Period (MEP) Avoid continuing to supply a buyer that is overdue beyond MEP as this will jeopardise your claim.  Please refer to our Q&A titled What does MCT & MEP mean?
2. Don’t trade above your Credit Limit Decision Your trade credit insurance policy covers you up to your approved credit limit.  Any deliveries above that will not be covered. For example if you have a $100K credit limit approved and trade at $120K, the additional $20K will not be covered and will be excluded from the claim calculation.
3. Do not offer payment terms to customers beyond the Maximum Credit Terms allowed in your policy When you set up your trade credit insurance policy, we agree to Maximum Credit Terms. Payment terms agreed with your buyer must be within your Maximum Credit Terms. Exceeding these terms will jeopardise your claim and can result in Atradius having no liability.
4. Ensure you take action to minimise any loss and try to recover the debt as soon as you realise there is a payment problem

You need to demonstrate action taken to minimise your loss.  Evidence of this can include:

  • Issuing a demand letter
  • Appointing Atradius Collections to chase the debt on your behalf -  we can offer contribution to costs of collection
  • Taking legal action
  • Pursue any PPSR, guarantees or any other security interest available
5. Ensure you notify Atradius of any overdue or adverse information as soon as possible

The sooner Atradius is informed of an overdue amount or adverse information, we can start protecting you and your business.

Notify Atradius if:

  • Your buyer becomes insolvent
  • Your buyer has Cash flow issues
  • Your buyer has offered to pay in instalments.  A repayment plan can be considered, however the repayment proposal must be approved by Atradius
  • You are aware of any reason that may prevent the buyer from paying you
6. Understand exactly what is required to be able to justify any “discretionary limit” Atradius grants you Your policy spells out the justification criteria for you to establish a limit under your Discretionary Limit.  Ensure you fully understand that criteria.
7. Don’t jeopardise your cover by trading on cash terms with a buyer without our approval. If a buyer is overdue beyond the maximum extension period (MEP) and requests future supply and offers to pay in cash, contact Atradius immediately before you consider agreeing to this.  Remember, any payments made in cash are allocated to the oldest outstanding receivable which may reduce any potential claim payment. 

 

Related content

What is credit risk?

Credit risk is associated with a borrower failing to repay a loan.

How long does it take to pay a claim?

How long does it take to pay a claim

How much does trade credit insurance cost?

The cost of trade credit insurance is calculated as a percentage of your turnover combined with the level of risk.

Disclaimer

The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.