DATE: MAY. 2020
We, World Packing industrial, have finish concluded our deal with China Insurance, a new 2020 year Insurance for whole year sales, cover all our export orders.
This will strengthen our competition ability and flexibility and also more importantly, makes our partner more competitive!
We sincerely welcome for your contact and discuss on our business, let’s make a Win-Win deal.
Shenzhen World Packing Industrial Ltd
Stretch Film & Packing Tape Specialist , Top China manufacturer
Contact us & let’s make Win-Win business, always stable quality stretch film, save you time & cost. : )
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Info: What is China Insurance
China CITIC is a government policy insurance company that protects the rights and interests of foreign trade enterprises. Although the export credit insurance itself is called insurance, the subject matter of the insurance, the customer group and the general insurance business are very different. Export credit insurance covers two types of risks, political risk and commercial risk, which covers the risks of defaults by governments and institutions around the world, such as coups, civil wars, and debt defaults.
General insurance determines the rate to avoid risks through actuarial models according to most rules. The larger the sample, the more accurate the actuarial results, and the more beneficial it is for insurance companies to avoid underwriting risks. A total of more than 200 countries and regions in the world rely on samples to be irregular and difficult to predict. Therefore, most of the export credit insurance of various countries is operated by the government.
Payout ratio
As for the compensation ratio, the comprehensive assessment of the details of the case, the nature of the product, the method of collection, and the creditworthiness of the customer is generally determined by the claims department through investigation and negotiation.
The compensation ratio of China Credit Insurance ’s short-term export credit insurance is generally 90%, but there are the following special circumstances:
1. Want to pay less premiums, only willing to insure low-end insurance products, the compensation rate will be reduced to 80% or even 60%;
2. The customer’s credit is not good, the credit line cannot meet the amount of shipment, and the amount of shipment cannot be reduced, and the compensation ratio will be appropriately reduced accordingly.
3. Does not meet the compensation requirements of China Credit Insurance. Even if the compensation ratio agreed by the policy is 90%, there are problems in the performance of the insurance contract, such as exceeding the time limit for reporting and claiming (one year), etc., depending on the circumstances of the compensation, the compensation ratio may be lowered.
In short-term export insurance, the credit line is the only and absolute advantage of China Credit Insurance, but export companies often do not realize this. Most people cannot understand that the “line” is actually a credit process. If CITIC has been doing business since the beginning of foreign trade, it can achieve a good investment return ratio through gradually increasing the credit limit. China Credit Insurance can effectively compensate for foreign trade risk sharing and recovery of cargo losses.
Attention
1. CITIC is just like auto insurance. After one payment, the premium will increase in the future. This is the cost to be considered.
2. The transfer of creditor’s rights to the recovery of CITIC will inevitably intensify the relationship with the customer, meaning that the customer will be lost from then on.
3. CITIC https://www.chinabrands.cn/dropshipping/article-zhongxinbao-2189.html does not support the payment of port fees, this part should be borne by yourself, you must understand the shipper and consignee of the ocean bill of lading. The goods can only be transferred without asking for discounts.
4. Any discounts reached with customers under the stalemate must be approved by CITIC Insurance and let CITIC Insurance sign the discount plan, otherwise the discount will not be compensated.
5. CITIC does not pay for disputes about quality issues. If a customer refuses to pay due to quality reasons, it is necessary to make a large sample test book in advance, so that quality is not a problem.