< The main objective of MECIB is to promote and develop Malaysian exports by providing insurance cover against certain types of risk in relation to international trade and giving guarantee in support of Malaysian exports. The following are the insurance policies that provided by MECIB to insure the international trade between exporters and importers.
Types of risks covered
1) Commercial or credit/ buyer risks - For example, buyer’s insolvency, buyer’s payment default and a general unwillingness of the buyer to pay or accept goods which have already been shipped/ delivered which is not due to quality dispute.
2) Non-commercial - Transfer or economic and political risks. For example, blockage or delay in the transfer of payment/ remittance, imposition of import restrictions in the buyer country after the goods have been shipped/ delivered, cancellation or non-renewal of export license, war between buyer’s country and Malaysia, revolution and other disturbances in the buyer’s country, default by the government and other causes of loss outside Malaysia beyond the exporter’s and buyer’s control.
Insurance Policies
Comprehensive Policy (Shipments) - A comprehensive shipment policy will cover exports which have been wholly or partly manufactured in Malaysia. Shipments will be covered irrespective of whether the payment terms are on an open account basis, a collection or letter of credit. This policy covers non-payment resulting from commercial/ country risks in respect of goods and commodities exported on credit terms of not more than 180 days. However, in exceptional circumstances, it is possible to insure goods sold on credit periods of up to two years. The cover commences from the date of shipment. Percentage of cover is up to 95% of the amount of loss. To be given insurance cover, the insured must pay an appropriate premium. The premium amount depends on