What are domestic receivables? What does domestic receivables insurance mean?

When selling products/services in the domestic market with a deferred payment, there are risks of possible non-payment of receivables. For protection against the risk of non-collection of their receivables, companies may insure their receivables against commercial risks.


Post-shipment insurance of domestic receivables

Post-shipment insurance of domestic receivables means insurance of the supplier’s receivables from its buyer from RNM after the realized delivery of the goods. Post-shipment insurance of domestic receivables includes:

  • insurance against commercial risks.
 

Commercial risks:

  • bankruptcy,
  • protracted default by a domestic buyer, 180 days from the agreed payment term.

Pre-shipment insurance of domestic receivables

Pre-shipment insurance of domestic receivables means when the supplier manufactures special order goods for a buyer in the RNM. DBNM shall indemnify the supplier in case the domestic buyer goes bankrupt during the manufacturing process, and in case the supplier is unable to sell the product to another buyer as a result of its specificness.

 

 Pre-shipment insurance of the domestic receivables includes:

  •  insurance against commercial risks.
 

Commercial risks:

  • bankruptcy

Credit Insurance Division Contact:

Tel: 02/3115-844, 02/3114-840 ext. 141, 142, 143, 144, 145.