DEBT COLLECTION INSURANCE – MONEY WELL SPENT
ITIC has recovered US$ 50 million on behalf of its Members who have debt collection insurance. ITIC offers its Members, under Rule 10, an optional cover to assist with the recovery of outstanding debts, commissions, brokerages and disbursements. This cover pays for any legal costs incurred in the recovery of the debt, rather than the debt itself.
The Club will also provide you with information on owners or charterers who have not paid their debts to other Members – invaluable to a ship agent when deciding whether or not to accept an agency appointment, and on what terms. As reported elsewhere in this issue, we are also hoping to be able to provide this information to you electronically, through the Club’s website.
Tact is vital in order to preserve commercial relationships and a polite reminder about payment can be all that is necessary. If this fails, upon your instruction, ITIC’s team of specialists in ship and asset arrest will use whatever legal means are necessary to try to recover the monies owed. You will find various articles in this issue concerning ship arrest which will give you some insight to the action, which may be required.
The sum in dispute must exceed US$ 3,500 for the cover to respond, although limited assistance can be provided for sums below this amount.
How much does it cost? This depends on many factors, such as the size of your company and activities. However the money recovered from one outstanding disbursement or commission is often more than the additional premium you pay for Rule 10 and the insurance can therefore be said to pay for itself.