Special Credit Insurance Program for ACAPMA Members
With the impact that increased fuel prices are having on businesses and the fact that debtors represent a significant proportion of a companies assets, as with any other asset that is insured, it is just as important to consider Insurance against bad debts.
Oamps have structured a specific Credit Insurance program for ACAPMA members that will ensure that member’s businesses are not adversely, perhaps even fatally, affected by the unforseen failure or default of a customer.
This program is not only specific to the fuel industry, but more particularly specific to each members needs, both from a structural and administrative perspective.
Credit Risk is important, however, we also understand the industries tight profit margins, and therefore we have ensured that this specific program provides ACAPMA members with not only quality of cover but also cost effective premiums.
- Can provide balance sheet protection from the adverse effects of a bad debt
- Allows liberalization of credit terms or an increase in exposure/sales and ultimately profits
- Can improve both the level and the cost of funding facilities
- Will assist with cash-flow management
- Aids in the obligation to protect the liquidity of a business and shareholders assets.
- 95% Indemnity (Standard in the Industry 90%)
- No Excess or Threshold (unless chosen)
- Fixed Premium – Therefore premium will not be affected by the fluctuation in fuel prices (no declarations of turnover)
- 5% Individual policy no clain bonus
- $85 LAC fee (standard in the Industry $100-145)
- Insurer to contribute to collection costs/service (including legal costs)
Rate Structure
Current rates are 0.09% (0.08% based on $5,000 threshold excess) of turnover (for total scheme turnover up to $150 mil), with further reduction in the rate as member participation increases.
Payment Guarantees
Many members have been looking for alternatives to the current program, due to both cost and inflexibility.We are in the process of finalising an alternative solution that will not only be competitively priced, but will also allow greater flexibility and minimise the impact on limits with regard to the volatile fuel prices.
