Taking out and Course of Insurance

Step 1)   Application for an insurance policy

In order to take out an insurance policy, it is necessary to fill out the application which is available in both an interactive form and paper form.
The insurance policy is compiled as a framework agreement, as to cover the entire turnover of the insured, regardless of whether it concerns export or sale in the domestic territory.

Step 2)    Insurance proposals and Draft Contracts

• e-BONUS
  • This product is intended for small and medium-sized companies.
  • For e-BONUS, the client will be provided with a draft contract immediately after filling out the interactive form (downloadable at www.kupeg.cz), and may then print out the draft contract themselves. This draft contract will be effective for 30 days.
• e-MODUL
  • This product is intended for medium-sized and large companies.
  • Upon receipt of the application, the insurer will assess the risks of the selected buyers, as well as other aspects of the applicant. Approximately 14 days after receipt of the application, the insurer will send the applicant a proposal of terms and conditions – this proposal will contain a draft contract, general terms and conditions of the insurance, and a draft agreement concerning the use of the online system. The specific content of the contract may be drafted on an individual basis.
• e-BOND
  • e-BOND bond insurance is intended for a wide variety of suppliers. e-BOND insurance is for the risk of non-fulfilled obligations by the insured.
  • After receipt of the application, the insurer will analyze the applicant and business case.  Usually within 14 days, the terms and conditions of the insurance and draft contract will be submitted to the applicant.

Step 3)    Signing the Insurance Contract

• The contract is to be signed by the policy holder.
  • The contract represents an agreement on the terms and conditions of the insurance.
  • o The insurance policy will be effective at the moment the insured's receivables are due from buyers (for whom a credit limit was provided).

Step 4)    Credit Limits

• After signing the insurance contract, a credit limit is defined for each buyer. These limits represent the possibility of insurance with respect to each individual buyer. At the same time, it is possible to agree lump-sum limits for buyers not specified in advance (unnamed buyers) – this applies only to e-MODUL. More about credit limits and the correct definition of the amount of an application for a limit >>>

Step 5)    Declaration of Turnover for Insurance Purposes

• Every month, the client will notify the insurance company in an agreed manner of sales performed in the previous month, sorted by individual buyers. More about the declaration of receivables >>>

Step 6)    Premium Calculation and Invoicing

• The insurer will calculate the premiums as a multiple of the premium rate and the value of the notified turnover, as described in the previous step. More about the calculation of premium and fees >>>
• The client will then receive an invoice for the premium.

and possibly Step 7)    Insurance Claim

• Notification of an insurance claim threat, or other changes in the conduct of a buyer, which may lead to an insurance claim. The receivable is recovered by the client in cooperation with the insurer, however always taking into account the business relationship between the client and the client's buyer. More about the notification of an insurance claim threat >>>
• An insurance claim will be deemed to have been incurred generally 5 months after the date of the Insurance Claim Threat Notification (waiting period) in the case of the buyer's protracted default, or on the day of receivables submission in bankruptcy proceedings in the case of the buyer's insolvency. Any insured receivables that have not been recovered will then be recognised as an insurance claim if all the relevant conditions have been met.  The client will receive a disbursement within 45 days after the insurance claim was filed. More on indemnification >>>