How to obtain the Policy (DPIP) and how it operates
Companies desirous of obtaining a Policy should submit a proposal to the Corporation. Proposal forms can be obtained free of charge from the Corporation.
After examining the proposal, the Corporation will send an offer letter to the Company together with a specimen of the Policy proposed to be issued and the premium rates applicable.
If the terms and conditions of the proposed Policy and the premium rates quoted by the Corporation are acceptable to the Company, an Acceptance Letter will be sent by the Company to the Corporation together with the prescribed Policy Fee.
Credit Limit on Buyer/Banks
Application should be made immediately using the prescribed forms for all the Company's buyers in order that the Corporation will have sufficient time to obtain reports on buyers and approve limits based on such reports.
Declaration of Credit Sales
The Company should declare on the prescribed forms every insured Credit Sale made during the policy period, within fourteen (14) days after the end of every calendar month. Failure to declare any insured Credit Sale will be a breach of an important condition of the Policy.
Payment of Premium
Premium becomes due to the Corporation as and when Credit Sales are effected and is payable on declaration of Credit Sales. Premium is the consideration for the insurance and therefore, it is important that it is paid on time.
Declaration of Overdue Amounts
The Company should declare on the prescribed forms all amounts which have remained overdue by 30 days or more until payment is received. In respect of these overdue buyers, the Company is required to act to minimize the loss, and should refrain from making further Credit Sales to the buyer.
Filling of Claims
Claims should be filed in the form prescribed by the Corporation immediately after occurrence of any of the Risks Covered.
Payment of of Claims
Claims shall be settled after a waiting period, which ranges from one to four months from the due date depending on the event causing the loss.
The Company is obliged to continue with the steps for recovering the amount due from the buyer except where the Corporation exercises the right of subrogation.
Sharing of Recovery
All amounts recovered from the buyer subsequent to payment of claim by the Corporation shall be shared between the Corporation and the Company in the same ratio in which the loss was originally shared by them.