29.07.2010 (UNI) Bharti AXA General Insurance and Coface South Asia Pacific signed an agreement to build and provide Trade Credit Insurance to customers in India.

The alliance will leverage the combined technical and product expertise of the two companies to develop solutions that suit the business environment in India, a company statement said.

Coface will also provide reinsurance support, risk evaluation and underwriting expertise as a part of the agreement, it added.

Under the product developed by Bharti AXA GI- a joint venture of Bharti Enterprises and AXA, coverage is provided up to 90 per cent of the invoice value and covers loss due to insolvency of a buyer, non-payment or protracted default by a private buyer, political risks such as war or riots, government measures that prevent performance of contractual obligations and cancellation of import license, amongst others.

The trade credit insurance market in India is very specialised and the total market size is estimated to be 50 million dollars of Premium, the statement said.UNI