What should I do about an imminent loss?
The policyholder must notify SERV immediately of any circumstances leading to an increase in risk, breaches or neglect of duties by the debtor, imminent or actual arrears and payment defaults. This is done to minimise the loss wherever possible. Action may have to be taken to avert or mitigate a loss: from extending the due date for a credit receivable right up to suspending delivery.
The loss arises once the waiting period has expired after the occurrence of an insured risk. The indemnification request form can be obtained from SERV and must be submitted no later than two years after the occurrence of the insured event (art. 17 (2) SERV-V).
If production risks are insured, SERV will reimburse the exporter for lost production costs on the undelivered part based on the cover ratio. In all other cases, the indemnification is calculated using the insured claims. The insurance covers contractual or statutory default interest during the waiting period. For more details, please see the Claims information sheet (PDF).
What happens after SERV pays the indemnification?
Once SERV pays the indemnification, the policyholder’s claim transfers to SERV up to the indemnification amount. However, the policyholder must still continue all recourse, realisation and loss mitigation efforts in coordination with SERV. SERV may share the costs of this legal action.
SERV may make restructuring agreements with debtors that are binding on the policyholder.
If the debtors are heavily over-indebted countries, debt rescheduling agreements are usually negotiated within the Paris Club. The Paris Club sets out binding framework conditions in bilateral agreements between the Swiss Confederation and the debtor country.