Factoring insurance policy
Dhaman provides factoring companies with a comprehensive credit and political risks insurance solution. The insurance policy protects from the risks of default of payment of an obligor; The compensation rate stands for 90% of the insured invoices for both domestic and export transactions.
Insured Risks
Credit Risks
Inability or failure, or refusal of the obligor bank to fulfill the payment The bankruptcy of the obligor bank
Political Risks
Currency inconvertibility and transfer restrictions Confiscation, Expropriation, and Nationalization Measures taken by the authorities of the issuing/obligor bank preventing the insured from obtaining his rights War and civil disturbances
Eligibility
Eligible Transactions
Export of goods and/or services of Arab origin. Import of goods and/or services of non-Arab origin by an Arab country from all over the world, provided the imported goods are developmentally sound for the importing country such as commodities, equipment, food, pharmaceuticals etc.
Eligible Financial Institutions
Factoring companies of Arab or joint Arab-foreign nationality Absence of ownership or Joint management relationship between the insured factor & the obligor
Procedure
1
Request for quotation
The Factor submits the identification form
2
Dhaman provides the Factor with an indication detailing the scope of cover and the pricing
Factoring Insurance Quotation
3
Issuance of the Insurance policy
Acceptance of quotation /policy signature/premium payment
4
Declaration of factored invoices on approved obligors on a monthly basis
Declaration of factored invoices
5
Compensation Process
Declaration of default of payment/Compensation disbursement/Collection from the defaulting obligor
End
Contact Us
Salem Saleh Head of Customer Relations Unit
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