ImageTrade Credit Insurance (TCI) – Buy Best Trade Credit Policy in India

The Benefits of Trade Credit Insurance

Account Receivable Protection

Protect a large and vital business asset. This policy pays you if a customer defaults on payment. In this way it ensures a steady cash flow and mitigates an important business risk.

Market Risk Cover

Trade credit insurance covers default for several reasons ranging from political situations, currency demonetization, license cancellation or exchange rates fluctuations. Defaults by public sector units can also be insured.

Bankruptcy Cover

Trade Credit Insurance protects defaults even if your customer goes bankrupt. The reason for bankruptcy is not relevant. This is particularly relevant for a fragmented customer base that is exposed to economic cycles.

Low Bad Debt

By taking trade credit insurance policy, you will cover all the risk of default by your customers. This will ultimately keep your bad debt level low, which further helps grow the business. Remain focus on business’s core activities and don’t worry about payment defaults.

Quick Guide to Trade Credit Insurance

What Is Trade Credit Insurance (TCI)?

Trade credit insurance (TCI) is a means of protecting your business against liabilities arising from your customers’ inability to pay for products or services due to several reasons such as bankruptcy, insolvency, political upheaval, etc. where the trade partner operates.

Credit insurance is also referred to as accounts receivable insurance, debtor insurance, or export credit insurance. It helps businesses protect their capital and cash flow. It can also help them secure financing terms with banks because of the surety that their customers’ accounts receivable will be repaid on time.

How Trade Credit Insurance Works?

An insurer takes into account a lot of factors such as business risks, volume of trades, creditworthiness of the buyers, industry of operation, repayment terms and so on when deciding on the cost for a trade credit insurance. And the coverage costs are typically less than 1% of the sales volume for such an insurance. So, as with any insurance, for a trade credit insurance also the cost is a projection of risks that the policyholder can pose to the insurer.

Also, under the trade credit insurance businesses have the option to modify the coverages based on their budget. For instance, they can choose to cover a large client in particular or select to cover a number of clients based on the business requirements. Such a policy also has provision for secondary coverage that comes to play when the primary cover is fully utilized in the form of claims. Based on the financial capabilities of the clients covered by the business partner, insurers decide on the credit limit. So, under a trade credit policy if a buyer fails to pay for the goods and services then the insurance company covers for the losses up to the indemnity ceiling.

Moreover, such an insurance also covers for political risks wherein firms that operate in unstable regions, multinational corporations, large hospital chains, etc. who hold large liability associated with them can stay protected from financial obligations.

Advantage and Benefits of Trade Credit Insurance (TCI)

Below are the benefits of a credit insurance trade policy:

  • Your business can be protected against risks which are basically out of human control
  • Improvement to bottom line quality of your business
  • Increase in profits and reduction in risks of unforeseen customer insolvency
  • You get to improve funding access at a more competitive rate
  • Protection against anticipated earnings restatement.
  • You can insure trade receivables and optimize bank financing
  • You have the provision to supplement credit risk management

How to buy Best Trade Credit Insurance (TCI) Policy Online in India?

A trade credit insurance policy, as you already know, is a very customized product and needs specific requirements and details to be captured before moving ahead with the process. SecureNow, as your insurance advisor, can help you get insurance from the top insurers who deal with a credit insurance policy such as SBI General, HDFC Ergo, Bajaj Allianz, New India Assurance. You just have to submit your basic details in the form above along with your estimated insurance turnover and the industry of operation, then you’ll be shown an estimated trade credit insurance premium to give you an idea of the coverage and the cost. We would request you to go ahead and click on buy now and an insurance expert will get in touch with you to capture your requirements and provide quotations for the best credit insurance. Additionally, you can write to us on support@securenow.inand an expert will get in touch with you.

What Trade Credit Insurance (TCI) covers?

A trade credit insurance policy can cover for your business from commercial and political risks. Below are the coverage details:

  • For top purchases, this policy covers for complete turnover with stipulated limits.
  • For small purchases, the limit is discretionary based on the insurer and the insured
  • The insurance also provides coverages for large purchasers
  • This policy also covers for non-payment from purchasers for both export-import or domestic trades

Note: These are just an indicative list. Read the policy wordings carefully to get the details of all the inclusions under your policy.

What Trade Credit Insurance (TCI) does not cover?

There are some exclusions under the trade credit policy:

  • Non-payment arising due to cross-country trade disputes
  • Sales to an associate company
  • Sales contracts where payment should be received in advance
  • Sales that are made under irrevocable and confirmed Letter of Credit
  • Recovery losses due to foreign currency fluctuations

Note: These are just an indicative list. Read the policy wordings carefully to get the details of all the exclusions under your policy.

Trade Credit Insurance (TCI) Settlement Process

Claim settlement process for a trade credit insurance is simple with SecureNow. You’ll have to drop an email at We’ll get back to you with all the details of the documents required for the claim settlement. You’ll have to reply with the duly filled and signed claim form along with the required documents. We’ll get in touch with the insurer and help you with this. If there is any additional documentation required, we’ll also inform you about the same. SecureNow will help you end-to-end with your claim settlement process.

Frequently Asked Questions

TCI stands for Trade Credit Insurance which can protect your business from a lot of liabilities arising due to inability of customers to pay for the products or services provided to them leading to financial loss.
A credit insurance policy can save you from payment defaults made by the customers, it covers for several political situations, demonetization, bankruptcy and also keeps your bad debt low. A trade credit insurance has a lot of financial benefits for a business, please refer to the “Advantage and Benefits of Trade Credit Insurance (TCI)” section above for details.
Credit insurance helps you when there is a liability arising due to non-payment by clients for use of your products or services leading to financial loss, or if there is any debt on account of business operations. You can have coverages based on your requirements and cover for so many potential risks.
Many businesses can benefit from a good trade credit insurance policy. A trade credit insurance, as you already know, has been created to support and strengthen your business. If calculated the premiums come up to just 1% of the loss that a business can incur if there are liabilities arising out of customer’s inability to pay or debt of the business.
  • It is important that choose a trade credit insurance properly to cover for the possible risks
  • Demonstration of enhanced quality of your accounts receivables to be able to show value to the lenders
  • Use of sound financial planning to target good- financially sound- customers
  • Clearly identifying market risks and opportunity areas
  • Properly designing your financial management system along with a process improvement plan

  • SecureNow has been helping numerous customers get the best trade credit insurance plan for years now. Let us be your advisor here and we’ll do an analysis to help you buy the best insurance plan for your business.


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