1. Breach of Contract Insurance
This product is a short-term export credit insurance product that protects a Chinese exporter from the loss of costs incurred under a commercial contract resulting from political risks and commercial risks. It is applicable to electrical and mechanical products, equipment packages, project contracting and shipbuilding.
| Covered risks | Commercial risks | The buyer goes bankrupt or insolvent; |
| The buyer terminates the contract unilaterally; | ||
| The buyer maliciously change the contract or refuses to pay for purchased goods; | ||
| Political risks | The buyer’s country or region promulgates a law or takes administrative measures to prohibit or restrict the outward remittance of export proceeds; | |
| The buyer’s country or region promulgates a law or takes administrative measures to prohibit the import of goods or revoke the import license; | ||
| The buyer’s country or region issues a moratorium, which affects the payment for goods; | ||
| The buyer’s country or region is embargoed or sanctioned; | ||
| A war or any other force majeure event occurs in the buyer’s country or region and prevents the buyer from performing the contract. | ||
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Covered percentage |
The insured percentage is chosen by the insured at its discretion, subject to a maximum of 90% | |
2. Specific Contract Insurance
This product protects a Chinese exporter from the loss of A/R under a commercial export contract resulting from political risks and commercial risks. Exported products under the commercial contract usually include electrical and mechanical products, equipment packages, high-tech products and other capital or quasi-capital goods, bulk trade commodities and contracted projects and related services.
