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Frequently Asked Questions

Q1

Question

What kind of risks are covered by Online Micro-Business Policy “OMBP”?

Online Micro-Business Policy

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?

Credit Limits

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?

Non-Payment and Claims

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?

Online Micro-Business 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?

Online Micro-Business Policy

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?

Credit Limits

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?

Credit Limits

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?

Credit Limits

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?

Credit Limits

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?

Credit Limits

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?

Non-Payment and Claims

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?

Non-Payment and Claims

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?

Non-Payment and Claims

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?

Non-Payment and Claims

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?

Credit Limits

Q15

Answer

No. Any premium paid is not refundable.

Q16

Question

How shall I allocate the payment received after the cancellation or expiry of the credit limit?

Non-Payment and Claims

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...

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