FAQs

You can file your claim when you are aware of any adverse information which may affect the payment of your invoices related to credit insured sales. Our Claim and Recovery Department will provide all assistance to you to file a claim and recommend appropriate measures to minimize your losses.

• Copy of the sales contract
• Sales invoices
• Proof of debt/non-payment of sales proceeds
• Proof of dispatching goods
• Proof of insolvency if applicable
• Documentation outlining the action you have taken to collect the overdue amount

The Export Credit Policy specifies a minimum period of time after which loss is ascertained to indemnify a claim for loss. This particular point of time is known as the “date of ascertainment of loss” which must be reached before any claim is paid.

If a buyer is not in a position to make payment on the due date of the export bill and requests additional time to settle the amount, the policyholder should make good commercial judgment on the request of the buyer based on facts and circumstances of the case. If the policyholder is convinced that extending the due date of the bill is the proper course of action, then the policyholder should seek the approval from Credit Oman, giving in detail, the reasons justifying such an extension.

If the buyer raises any disputes regarding quality of goods exported, the claim for the resultant loss will be considered once the disputes are settled amicably by the policyholder with the buyer or the policyholder obtains judgment in his favour from the court of law in the buyer country.

Where payments are not realized due to exchange transfer delays, claims can be filed with Credit Oman after six months from the date on which the buyer has, after making the payment in local currency, completed exchange control formalities necessary for the transfer of funds to Oman. Where Credit Oman has stipulated a longer waiting period, claims can be filed only after completion of such period.

Notification of all payments not received within two months of their due dates should be sent to Credit Oman on the Overdue Declaration Form. The declaration should be sent on or before the 10th of every month.

Credit Oman has managed to recover 16% of the total claims it has paid to its policyholders since its inception of its operations. This is in line with the average for other emerging ECAs where the recovery ranges between 10% to 20%.

The policyholder is expected to take necessary actions to minimize the possible losses. Action should be prompt and effective.

Credit Oman will not contribute any costs involved in settling disputes. Also, Credit Oman does not contribute any in-house costs and overheads such as administration and travel expenses.

After payment of a claim, Credit Oman has the right to take over the debt, but while it does exercise this right in some instances, it will normally require the policyholder to continue recovery action along the path already agreed with Credit Oman subject to any further requirements it may have.

All proceeds of recovery action must be remitted in full promptly to Credit Oman for allocation. Credit Oman will then allocate a proportion in which the original loss was shared.

Yes, Credit Oman will reimburse the policyholder the legal fees paid to lawyers in the buyer’s country up to the proportion in which liability for the debt has been admitted by Credit Oman. Also, the policyholder should obtain concurrence form Credit Oman to initiate legal action for recovery.

The policyholder should keep Credit Oman informed of all steps already taken towards recovery of amounts in default. Credit Oman will also suggest certain course of action for recovery based on the development and circumstances.

After payment of a claim, Credit Oman has the right to take over the debt, but normally Credit Oman requires the policyholder to proceed with the recovery action along the path already advised and agreed by Credit Oman considering the insured being the contractual party with the buyer for the export sales made.

The policyholder should keep Credit Oman informed of all actions taken to recover amounts in default. Credit Oman also will assist the policyholder towards recovery action and suggest certain course of action based on the development against the action already taken by the policyholder. The policyholder is required to act on the basis of such advice provided by Credit Oman in accordance with the terms of the Export Credit Policy.

The policyholder is required to vigorously pursue recovery action and to keep Credit Oman informed of such action from time to time. As and when any amount is recovered, the amount will have to be shared with Credit Oman in the ratio in which the loss was borne.

Yes. Credit Oman normally reimburses the legal fees paid to the appointed lawyer and the court, in the buyer’s country in the proportion of its liability to the total outstanding debt provided the claim for loss is admitted by Credit Oman. It does not contribute other expenses such as travel expenses, auditor’s fees, translation charges and any overhead expenses, etc. However, Credit Oman is not obliged to share recovery costs, as per the policy. Also, being an insured, you should inform Credit Oman, on the legal fees agreed upon in advance.

The policyholder has a prime responsibility as per the Policy to vigorously pursue recovery action and to keep Credit Oman informed of such action from time to time. As and when any amount is recovered, the amount will have to be shared with Credit Oman in the ratio in which the loss was borne.

In case of recovery expenses, documentary evidence of recovery expenses inquired by the policyholder with the approval of Credit Oman should be furnished to Credit Oman to reimburse the recovery expenses in the same proportion in which losses were apportioned between Credit Oman and the policyholder.

The post-shipment financing allows the policyholders to improve on their liquidity or cash flow position as they get necessary funding from commercial banks through bills discounting of their export receivables and at a concessional interest rate as agreed between Credit Oman and the commercial banks in the country.

Upon receipt of intimation from the policyholder to this effect, Credit Oman would contact the concerned bank to ascertain the reasons for not discounting the export bills which are credit insured under the Policy and endeavor to assist the policyholder. Sometimes, the banks may have some restriction in extending further credit facilities due to past due facilities with them, or with the other banks which are under litigation.

Credit Oman has signed MOUs with most commercial banks operating in Oman under the post-shipment financing program whereby credit insured policyholders can discount their export bills with commercial banks against preferential interest rates, thus reducing their post-shipment financing cost. Credit Oman can also issue pre-shipment export credit guarantees whereby banks are able to provide financing at a pre-shipment stage for working capital needs of policyholders. In addition, Credit Oman’s “Documentary Credit Insurance Policy” allows the commercial banks in Oman to add their confirmation on irrevocable letters of credit after obtaining Credit Oman’s guarantee in order to protect them against the risk of non-payment of an irrevocable letter of credit issued by the importer’s bank. Therefore, these products offered to commercial banks in the Sultanate of Oman will play a great role in the process of encouraging and promoting export insurance.

(1) You must use all reasonable and usual care and skill and take all practical measures, including any measures which may be required by us, to prevent or minimize loss and we shall not be liable for loss if you fail to take all such practicable measures to prevent or minimize loss within a reasonable time after you have learned of the occurrence of a cause of loss or of any event likely to cause loss;

(2) You must promptly notify Credit Oman in writing when you become aware of the occurrence of any cause of loss, or of any event likely to cause loss, or that the Issuing Bank is unable to pay its debts as and when they fall due or that the Issuing Bank is in financial difficulties.

(3) You must provide us with all information and documents that we may require.

The Export Credit Policy is normally recognized by the commercial banks as a valuable form of an additional security. If necessary, the policyholder can assign the benefits of the Policy to his financing bank which allows Credit Oman to pay claims directly to the Bank. Consequently, the credit insured policyholder can enjoy improved financial facilities through relatively lower interest rates.

The risk covered is the failure of a Supplier to pay back the Insured Advance Payment within the Protracted Default Period in case the commercial contract is not fulfilled by the Supplier.

The advance payment or series of advance payments made by the Insured to the Insured’s supplier before the fulfilment of obligation of delivery of goods or rendering of services, as per the terms referred in a legally enforceable contract between the Insured and its Supplier.

The supplier is the entity to which the Insured has made an Advanced Payment for goods or services to be provided as per the Contract.

Suppliers are only those companies the Insurer accepts in the Credit Limit Decision and will not include the following:-

• Any sovereign (such as king), state, government or government department and any company who receives at least 50% of their funding from government or public funds unless otherwise agreed by the Insurer in writing.
• Any company who the Insured or any of the Insured’s directors, members, employees or associates are financially connected with.

The agreed credit terms and maximum monetary value that the Insured may have at risk at any one point of time with each Supplier.

The end of the period or the date or dates indicated in the commercial contract within which the goods should be delivered, or services should be rendered

The Loss Date for each cause of Loss is as follows:-

• In the event of a protracted default, the Loss Date shall be the date upon which the protracted Default period expires (normally 4 months or 120 days from the original due date) , or where a provision claim form is not submitted in accordance with terms and conditions of the cover the date upon which the protracted default period expires after commencing at the date on which the Insurer received the Insured’s advice of the default on repayment of the Advance Payment.
• In the event of the Insolvency of the Supplier, the Loss date shall be 30 days after the submission of documents that confirm the insolvency of the Supplier.

The following qualify for the Insured Advance payment: –

• Owed to the Insured by the Suppliers for goods to be delivered or services to be rendered under commercial contracts by the Insured as the Insured named in the Schedule.
• The expenses the Insured pays with the Insurer’s agreement in trying to get the Insured’s Suppliers to repay an Advance Payment.
• The expenses the Insured pays with the Insurer’s agreement in recovering goods after the Insured has made a claim.
• The expenses the Insured pays to an agent with the Insurer’s agreement in trying to re-sell goods recovered from a Supplier on whom the Insured has made a claim.

• Any late payment interest or extra charge.
• Any loss caused by war, hostilities, unrest or any such similar event or events and such event or events directly results in the failure of the insured Supplier or Suppliers to repay the advance payment insured by this Policy.
• Any accident which results in a nuclear explosion or a leak of radioactivity.
• An advance payment which is or would be covered under any other insurance if this policy did not exist.
• Loss due to delay in the transfer of funds to the country through the banking system or losses resulting from changes in exchange rates of foreign currencies.
• Loss because the repayment obligation of the Advance Payment is not legal enforceable obligation under the commercial contract.
• Any advance payment made to the Supplier after a claim has already been made in respect of that Supplier unless the Insurer agrees otherwise.
• Penalties whether contractual or awarded by Court, the cost of collection, or the prejudice to the Insured as a result of the cancellation or the undoing whether amicably or by court order of a transaction for any reasons whatsoever.

The sum of Advances Payments made or paid to the Supplier.

less :-

• the value of delivered goods or rendered services according to the commercial contract.
• the value of all received payments, indemnities, default interest and realized other collaterals.
• the sum of received and sold subsidiary goods, diminished for the costs of sale.
• value of other benefits, which the Insured received in connection of the break of the commercial contract by the Supplier.

• For a protracted default case, within 60 days of Advance payment refund date mentioned in the commercial contract in case the commercial contract is breached by the Supplier.
• For an insolvency case, within 10 days of you becoming aware that the covered Supplier becomes Insolvent
• For a bounced cheque, within 15 days of the bounced cheque date if it has not been cleared
• When the Insurer has cancelled or suspended a Credit Limit and the Insured cannot collet an overdue refund of an advance payment within 20 days of the Date mentioned in the commercial contract.

• For a Protracted Default case, within 60 days of Advance Payment Refund date mentioned in the commercial contract is breached by the Supplier.
• For an insolvency case, immediately when the Insured becomes aware that the Supplier owing a debt becomes insolvent.
• For a bounced cheque, immediately after 10 days of the bounced cheque date if it has not been cleared.
• When the Insurer has cancelled or suspended a Credit Limit.

The Insured must send the Claim form:

• For a protracted Default case, within 90 days of Advance Payment Refund date mentioned in the commercial contract in case the commercial contract is breached by the Supplier.
• For a insolvency case, within 20 days of the Insured becoming aware that the Supplier becomes insolvent.
• When the Insurer has cancelled or suspended a Credit Limit and the Insured cannot collect an overdue refund of an advance payment within 30 days of the Date mentioned in the commercial contract.

Credit Oman will pay a claim for an Insured Advance Payment not later than 30 days after the earliest of the following:

• For a protracted default claim, when the Insurer receives the Insured’s claim form including all the information and documents the Insurer needs to assess the extent of the claim. However, no payment would be made before the Loss Date.
• For an insolvency claim, when the Insurer receives the Insured’s final claim form, including all the information and documents the Insurer needs, confirmation of the Advance payment from the Insolvency Practioner or other authorized agent. However, no payment would be made before the Loss Date.
• The end of six months from the date when a court judgement against a Supplier in the Insured’s or the Insurer’s favour cannot be enforced.