Trade Credit Insurance protects businesses against the risk of non-payment by buyers. Whether your customer goes bankrupt, defaults on payment, or faces political risks in cross-border trade — TCI ensures your receivables are protected and your cash flow remains healthy.
For most businesses, accounts receivable is the single largest uninsured asset on the balance sheet. Trade credit insurance changes that — turning uncertain receivables into protected revenue.
Available from insurers like ICICI Lombard, HDFC ERGO, Tata AIG, Bajaj Allianz, and the government-backed ECGC for export credit. Premium typically ranges from 0.1–1% of insured turnover.
Protection against both commercial and political risks affecting buyer payments.
Covers losses when your buyer goes bankrupt, enters liquidation, administration, or any formal insolvency proceedings and cannot pay outstanding invoices.
When a buyer simply doesn't pay within the agreed credit terms (and beyond a waiting period, typically 90–180 days) without any dispute — the insurance covers the overdue amount.
For international trade — covers non-payment due to war, civil unrest, government import restrictions, currency transfer blockades, or sanctions in the buyer's country.
When a buyer refuses to accept goods that have already been shipped or manufactured to specification — covering the seller's losses including freight and manufacturing costs.
In export scenarios — protects against losses when the buyer's local currency cannot be converted to the seller's currency due to government controls or economic crisis.
Covers losses when a buyer cancels or defaults before the goods are shipped — protecting your manufacturing, procurement, and preparation costs.
Different policy structures for different business needs — from covering your entire buyer portfolio to protecting against a single critical customer.
Covers your entire portfolio of buyers — all accounts receivable from all customers are insured under a single policy. This is the most comprehensive and cost-effective option because the risk is spread across many buyers.
Insures only your most important customers — the key accounts whose non-payment would have a material impact on your business. Allowed under IRDAI guidelines as a segment-based approach.
Covers receivables from one specific customer who represents a significant concentration risk to your business. Ideal when a single client accounts for a large share of your revenue.
Covers a single large contract or transaction rather than ongoing trade. Ideal for one-time large orders, capital goods sales, or project-based deliveries.
Provided by the Export Credit Guarantee Corporation of India (ECGC), a government-backed entity. Covers both commercial and political risks for Indian exporters selling to international buyers.
Covers receivables from domestic buyers within India. A rapidly growing segment as Indian businesses increasingly recognize the value of protecting their local receivables.
Any business that sells on credit terms — whether domestic or international.
Protect your receivables from distributors and retailers. Essential when extending 30–90 day credit to your channel partners.
You sit between the manufacturer and retailer — with thin margins, even one large default can wipe out profits. TCI is critical risk management.
International trade adds political risk and cross-border collection challenges. ECGC and private TCI protect your export receivables.
Service companies with large outstanding invoices from clients — especially those with concentration risk in a few key accounts.
High-volume, low-margin commodity businesses where a single buyer default can be devastating. Essential for agri, metals, and chemical traders.
Companies expanding into new markets or onboarding new buyers. TCI lets you extend credit confidently, backed by the insurer's buyer assessment.
Recover 75–95% of your insured receivables if a buyer defaults. Transforms unpredictable bad debt into a manageable, insured cost.
Insurers continuously monitor your buyers' creditworthiness. You get early warning signals before defaults happen — invaluable market intelligence.
Banks are more willing to lend against insured receivables. TCI can improve your working capital financing terms and reduce collateral requirements.
Extend credit to new buyers and enter new markets with confidence. The insurer's credit assessment helps you make informed decisions about new relationships.