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ILC

Irrevocable Letter of Credit, or irrevocable documentary credit. See irrevocable L/C.

Insolvency (established or protracted default)

One of the covered causes of loss in the policy. The most common forms of insolvency are bankruptcy and judicial reorganisation procedure. Similar judicial or administrative proceedings instituted under the law of the debtor's country can also be considered as insolvency. We consider non-payment of a claim after the waiting period, without bankruptcy or judicial reorganisation procedure, to be a protractive default.

Insurable turnover

The total amount of business turnover or sales against which there is a credit limit (through Atradius or self-assessment) and thus covered by the policy. In other words, it is the total amount of outstanding receivables that a business insures against the risk of customers not paying their invoices due to insolvency, default or other reasons specified in the policy.

Insured

your company

Insured percentage

The percentage applied to the claim or credit limit to calculate the compensation you are entitled to.

Insured receivables

Insured receivables are contractual amounts owing to you:

1. by buyers in the countries included in the schedule of countries and
2. that arise from your normal trade activities as mentioned in the policy schedule and
3. that relate to goods despatched or services or work performed within the policy duration and
4. for which you have a valid credit limit for the buyer and
5. for which the payment terms agreed with the buyer do not exceed the maximum credit terms mentioned in the policy schedule which shall be calculated from date of invoice and
6. which comply with the conditions of cover for the buyer's country as specified in the schedule of countries.

Insurer/we

Atradius Crédito y Caución S.A. de Seguros y Reaseguros, the credit insurance company

Insurer's liability

Amount calculated by applying the covered percentage to the outstanding balance. This amount is then paid upon the insolvency of an insured debtor, within the limit of the authorised cover and taking into account any deductibles.

Intervention threshold

Your obligation to transfer collection to the 'collection service provider' does not apply as long as an outstanding amount is less than or equal to the amount of the 'intervention threshold' mentioned in the policy schedule.

The 'collection service provider' will not proceed to collect the debt and we will not pay you compensation for the loss. Also, we should not contribute to the collection costs you incur here.

Invoicing period

The period between the delivery or shipment of the goods, provision of services or performance of work and the invoicing for it. This period is specified in the policy.

Irrevocable documentary credit (ILC)

Once opened, this type of documentary credit (L/C) cannot be revoked (withdrawn) by the bank or by the debtor.