G. Compensation

You will receive the compensation within the month following the expiry of the waiting period in case of presumed insolvency and within the month following the date of damage in case of established insolvency (bankruptcy, WCO, etc.).

1. Calculation of an indemnity

The indemnity is calculated on the date of loss, based on the amount of the claim at that time. This takes into account the applicable credit limit and the percentage of cover from your policy.

Your claim includes:

• invoices excluding VAT (unless your policy also provides coverage for VAT);
• transport costs, packaging costs and insurance costs to the extent that they form part of the original invoice.

2. Intervention threshold
You cannot submit a claim equal to or less than the amount of the intervention threshold provided in the policy for collection or compensation.

3. Collection costs
All recoveries for covered claims are covered by the policy and do not cost you anything. This applies to recoveries both before and after the claim date.

You will only be charged collection fees for recoveries of claims that are not covered or pro rata for only partially covered claims. You will find the costs and fees for this in the Collection contract that forms part of the policy.

On this page you will find an explanation on the accounting treatment of collection costs.

4. Allocation of recoveries

• Recoveries before claim date
  Before the claim date, recoveries are allocated to the claim in chronological order, starting with the oldest outstanding invoice. If the debtor pays to Atradius, we deposit this amount into your account. If the debtor pays into your account, you notify us of the amount and date of receipt. Because of this 'revolving system', parts of the original unsecured claim can still be covered afterwards. The example below makes it clear.
• Recoveries after the loss date
  After the date of loss and thus after the payment of compensation, all recoveries are divided between you and Atradius according to each party's share of the loss.

Example:

Original situation

Authorised coverage:	€ 10 000
Total outstanding amount:	€ 15 000
Percentage of coverage in the policy:	90%

 

 

 

 Click on the visual to enlarge it 

Collection action
Recovery of €6 500 before compensation. This amount of €6 500 will be deposited into your account.

Invoices covered: € 8500 Invoices not covered: € 0 

Click on the visual to enlarge it

Compensation
If there is no additional recovery, the amount of your compensation in this example is €7 650 (90% of €8 500).

Due to recoveries for compensation, the €5 000 (invoices 6 and 7), which was not originally covered is now finally covered under the policy.