Frequently Asked Questions
Q1
Question
What kind of risks are covered by Online Micro-Business Policy “OMBP”?
Q1
Answer
- the insolvency of the buyer/client;
- the failure of the buyer/client to pay for goods accepted by it/ services rendered to it
Q2
Question
What is a credit limit?
Q2
Answer
The maximum amount of loss HKECIC may be liable for in respect of a buyer/ client during the specified period.
Q3
Question
When should I report likely loss?
Q3
Answer
You must immediately inform HKECIC via EC-Reach if you become aware that your buyer/client is insolvent, or all amount which remain unpaid for more than 30 days from the due date.
Q4
Question
What documents do I need to submit when applying for the policy?
Q4
Answer
You need to upload your Business Registration Certificate copy during the online application.
Q5
Question
Do I need to have a written contract of sale/service contract with the buyer/ client?
Q5
Answer
Yes. The contract must be in force before shipment and/or services rendered and be evidenced in writing.
Q6
Question
What amount should I ask for when I apply for a credit limit?
Q6
Answer
Normally, it reflects more or less the maximum amount owed or likely to be owed by your buyer/ client concerned at any one time instead of the total amount of orders in hand. The minimum applied amount is ...
Q7
Question
How long does it take for a credit limit to be approved?
Q7
Answer
HKECIC may already have adequate information on the buyer/ client concerned, in which case a credit limit can normally be approved within three or four days. In some cases, if further information is needed, it may take a longer time...
Q8
Question
Will I be covered if I make the shipment/render the service before the effective date of the credit limit?
Q8
Answer
No. The shipment must be made/ service must be rendered within the effective period of the credit limit.
Q9
Question
Can HKECIC disclose the reasons for restricting or refusing cover on my buyer/ client?
Q9
Answer
As HKECIC has given undertakings to our providers of credit reports that HKECIC will not disclose the contents of their reports to any other party, it is not possible for HKECIC to advise you of the specific details...
Q10
Question
Can I disclose the credit limit issued by HKECIC to the buyer/ client?
Q10
Answer
No. There is a requirement under the Policy that the details of the Policy, which include but not limited to discussions, information and correspondence in connection with the credit limit must not be disclosed to...
Q11
Question
Will HKECIC share the costs incurred for pursuing overdue debts from the buyer/ client?
Q11
Answer
Yes, given that you have obtained our prior written approval, HKECIC will reimburse you up to 90% of the unrecovered legal costs or charges incurred solely for the purpose of preventing or minimising losses. However...
Q12
Question
When will I get the claim payment?
Q12
Answer
Generally speaking, claim payment to be made as follows assuming that adequate information has been provided as required by HKECIC and the terms and conditions of the Policy having been complied with...
Q13
Question
How will HKECIC handle my claim if the buyer/client raises dispute?
Q13
Answer
HKECIC will consider your claim after you have obtained a final judgement enforceable against the buyer/client in the buyer’s/client’s country or such dispute has been resolved in such other manners approved by HKECIC.
Q14
Question
How much will I get for the claim payment?
Q14
Answer
If your amount of loss does not exceed your credit limit, HKECIC will compensate you the amount of loss multiplied by the percentage of indemnity...
Q15
Question
Can I get refund of the premium paid if I have not shipped the goods/ rendered any services?
Q16
Question
How shall I allocate the payment received after the cancellation or expiry of the credit limit?
Q16
Answer
Unless otherwise agreed by HKECIC, any payment, whether or not relating to the insurable contracts, received after cancellation or expiry of the credit limit...