What is insured?

Insured is a generic term that refers to any person or entity legally entitled to receive the benefits of an insurance policy, typically claim payments. Insurers make payments to insureds after they experience a covered loss, damage, or an injury that qualifies for payment under the policy’s terms.

What is an Export Credit Agency (E.C.A.)?

An export credit agency offers trade finance and allied services to facilitate domestic companies’ international exports. Most countries have E.C.As. that provide insurance, loans, guarantees, etc. to help eliminate the uncertainty of exporting to other countries by reducing the risks associated to it.

How is the EXIM Bank funded?

Export-Import Bank of Pakistan (EXIM Bank) has been established under the Act of Parliament of Pakistan. EXIM Bank draws its funding from the Government of Pakistan and multilateral development institutions like the Asia Development Band and Islamic Development Bank under agreements with the Government of Pakistan.

What is Trade Credit Insurance?

Trade Credit Insurance is a financial contract (indemnity) between an insurance company (insurer) and a business (insured) that undertakes to pay the insured if its buyer (of goods or services) does not pay their invoices. It gives businesses the confidence to explore new markets, extend credit to new customers and improves access to funding, often at more competitive rates.

Are Trade Credit Insurance (T.C.I.) and Export Credit Insurance (E.C.I.) the same?

Yes, “largely” E.C.I. and T.C.I. are referred to as same financial arrangements. Trade Credit Insurance includes domestic and international trade whereas Export Credit Insurance is used for International Trade only. These are the financial arrangements for protecting a business against its commercial customers’ unforeseen inability to pay for products or services, whether because of bankruptcy, insolvency, or political upheaval in countries where the trade partner operates.

How is Trade Credit Insurance differentiated with Letter of Credit (L.C.)?

A letter of credit from the Buyer can reassure of their ability to meet their financial transactional obligations, because the invoice covered by a letter of credit will be paid. Legally speaking L.C. is a guarantee from the Importer’s Bank. For those exporters who wish to sell their goods to larger importers or big names, asking for an L.C. from importer may deprive them of the level playing ground, Trade Credit Insurance helps those exporters in this regard. In Trade Credit Insurance, EXIM Bank indemnifies their invoices and gives them the comfort to enter a credit-based contract with importers.

Trade credit insurance offers a similar guarantee of payment as a letter of credit, but without the added costs and burdens. This solution is unlike letters of credit because it’s not just one transaction through a bank, it’s a continued partnership. Credit insurance allows businesses to protect themselves from non-payment, as well as drive growth and effectively manage risk.

What is Domestic Credit Insurance?

It provides coverage for credit sales within the national market, to legal or natural entities which carry out commercial activities. In the initial stages EXIM Bank is not offering Domestic Credit Insurance, however with its expansion plans, it is keenly analysing the Pakistani market to offer such products.

What is the difference between Cargo Insurance, Marine Insurance and Export Credit Insurance?

Marine Insurance is a line of insurance applicable to the conveyance of cargo over land or water. It can cover loss of or damage to ships, cargo, terminals, pipelines, ports, oil rigs and platforms, and similar property. The two branches of Marine Insurance are Ocean Marine (primarily water-based exposures) and Inland Marine (primarily land-based exposures). In addition to first-party coverage for damage to property, Ocean Marine insurance also typically covers liability arising from the insured vessel under a coverage called “protection and indemnity.” Marine Insurance covers the risks associated with shipping goods by sea, while Cargo Insurance specifically covers the loss or damage of goods during transit. Marine Insurance covers a wider range of risks, including damage to the ship or crew, while Cargo Insurance is more focused on the cargo itself.

Cargo or Marine Insurance offers protection against physical loss of, or damage to goods, while Trade Credit Insurance provides protection against financial loss arising from non-payment by Buyer. Trade Credit Insurance serves as a risk management tool that safeguards the business of the Policyholder from potential losses resulting from unpaid invoices. It is a versatile solution that offers customised coverage for both your domestic and export customers, based on your specific requirements.

In addition to being referred to as Trade Credit Insurance, it is also commonly known as Debtor Insurance, Export Credit Insurance, and Accounts Receivable Insurance

How will it benefit Exporters of Pakistan?

To support export growth, EXIM Bank will be providing its credit insurance products directly to exporters and through banks covering all the sectors but with a focus on SME clients.  Typically, the Exporter will be encouraged to sell products on credit/Documents against Acceptance (D.A.) terms to acceptable buyers, rather than advance payments or Letters of Credit (L.Cs.), thereby making exporters more competitive. Currently EXIM Bank is offering 4 products for Trade Credit Insurance, the detailed product features are available on our website under ‘Solutions’.

Are there policies designed specifically for S.M.Es.?

Besides all the products being offered to SMEs, EXIM Bank has specifically tailored a product named Bank Master Policy (B.M.P.), through which the insurance coverage will be specifically provided to S.M.Es. Though in this product, EXIM expands its coverage through the commercial banks network performing Authorised Dealers functions and providing intermediary services to International Trade. Through this product EXIM Bank insures the portfolio of the Bank by individually analysing the buyers of each different S.M.E. exporter.

Is Credit Insurance expensive?

The cost of Trade Credit Insurance is generally cheaper than a letter of credit (L.C.) and can often pay for itself with the additional sales that are generated from offering more favorable payment terms. An Exporter can incorporate the cost of credit insurance into the cost of their goods.

Can I get a Trade Credit Insurance for an “open account” transaction?

An open account transaction in international trade is a sale where the goods are shipped and delivered before payment is due, which is typically in 30, 60 or 90 days. Obviously, this option is advantageous to the importer in terms of cash flow and cost, but it is consequently a risky option for an exporter. Because of intense competition in export markets, foreign buyers often press exporters for open account terms. EXIM Bank provides protection to the exporter in Open Account Transactions by insuring their receivables.

Can I get claim against a shipment which is rejected on account of “non-performance of trade contract?

No. EXIM Bank is not responsible for payment of claim in case the shipment is not made in accordance with the Contractual obligations between importer and exporter. EXIM Bank is liable to pay as per specified risks mentioned in the policy.

What is the difference between Trade Credit Insurance, Forfaiting, Factoring and Bill Discounting?

A “Factoring” arrangement typically involves the borrower selling their trade receivables to the factor in exchange for an advance payment. The borrower receives a certain percentage of the receivable with a deduction made for the factor’s margin or reserve, as well as their commission and interest on the advance. “Forfaiting” is a financial mechanism that enables an exporter to receive instant cash payment by relinquishing their right to receive payment from the importer for goods delivered or services rendered, at a discount to a Forfaiter.

“Bill Discounting” is a process of trading or selling the bill of exchange to the bank or financial institution before it gets matured, at a price which is less than its par value. The discount on the bill of exchange will be based on the remaining time for its maturity and the risk involved in it.

In bill discounting, bills are traded while in the case of factoring accounts receivable are sold. Bill Discounting takes place generally for D.A. bills where there is an USANCE perio, whereas, a financial transaction in which the business/organisation sells its book debts to the financial institution at a discount is known as Factoring. Bill Discounting and Forfaiting involves dealing with negotiable instruments like bills of exchange and promissory note which is not the case in Factoring.

At its core, trade credit insurance is a type of business-to-business accounts receivable insurance that shields the policyholder or seller from losses resulting from a buyer’s failure to pay outstanding amounts owed to the seller. Alternatively, this practice may be referred to as “selling on credit terms,” which is a cost-effective financing solution for buyers that can help boost sales.

What are Accounts Receivable?

Accounts receivable arise when a seller delivers goods or services to a buyer but has yet to receive payment, resulting in a debt owed by the buyer to the seller.

How does Trade Credit Insurance work?

EXIM Bank determines the cost of Trade Credit Insurance based on the level of risk posed by the policyholder, which is assessed through various factors such as trade volume, buyer creditworthiness, industry type, and buyer repayment terms. Businesses can tailor their coverage to their budget and risk tolerance, such as covering specific clients or a select number of clients. Some policies offer secondary coverage if the primary policy fails to cover the full amount of a claim.

Insurance providers assign a credit limit to each trade partner based on their financial strength, and coverage only applies up to that limit if the buyer fails to pay.

Can I insure a single transaction only?

Yes, our product Specific Transaction Policy (S.T.P.) is issued for a single transaction.

What kind of risks are insured?

Trade Credit Insurance insures against the risk of non or late payment. A buyer will not pay after he has been declared bankrupt, insolvent, or a similar legal status. Similarly, buyers sometimes opt for a bankruptcy protection arrangement, which allows them to delay payments for an extended period. Both instances are covered under a Trade Credit Insurance policy. Policies can include a wider range of cover, depending on the circumstances. Some policies consider a delay in payment also to be an insolvency (so-called protracted default cover).  If a buyer does not pay, the Policy will pay out a percentage of the outstanding debt. This percentage usually ranges from 75% to 90% of the invoice amount but may be higher or lower depending on the type of cover that was purchased.

In consideration of the payment of the Premium and the Administration Fee by the Policyholder, and subject to the provisions of the policy, EXIM Bank may indemnify the Policyholder for the insured percentage of any Loss caused by the non-payment up to the Maximum Aggregate Liability specified in the Credit Approval, provided that such Loss is directly caused by any of the following risks;

Commercial Risks: (i) Insolvency of the Buyer, (ii) Failure or refusal of the Buyer to discharge any payment obligations under the Insured Shipment, provided that the Policyholder was in compliance with all terms & conditions of the Insured Contract at the Date of Loss, and (iii) Failure or refusal of the Guarantor to fulfil any of its obligations under a guarantee of payment issued by the Guarantor in respect of the Insured Contract.

Non-Commercial Risks: (i) Currency transferability and convertibility restrictions, sanctions imposed by the government of the Buyer’s Country or, where applicable, Guarantor’s country, (ii) Any legislative action or administrative action or omission of the Buyer’s country which has the effect of depriving the Policyholder of its ownership or control of any goods sold under an Insured Contract or of any benefit relating to such goods, and (iii) War or Civil Disturbance in the Buyer’s country (with certain exclusions as mentioned in the policy).

What are the “Exclusions*” of insurance policy?

EXIM Bank shall not be liable for any Loss caused directly or indirectly by the following events under a Policy:

(a) Any failure by the Policyholder to fulfil any of the terms & conditions of the Insured Contract or to comply with the provisions of any law, including any order, decree or regulation having the force of law in the Policyholder’s country, Buyer’s country and/or otherwise relating to the Insured Contract; or (b) theft, physical loss of, or damage to, the goods, including any risks covered by marine insurance; or (c) delays in delivering goods to the Buyer, unless such failure, loss, damage or delay results from war (including civil war, hostilities, rebellion and insurrection) in the Buyer’s country or any measure or decision of the government of the Buyer’s country subsequent to the date of shipment of the relevant goods; or (d) war (whether before or after the outbreak of hostilities) between any of the following: People’s Republic of China, France, United Kingdom, the Russian Federation, and the United States of America; or (e) any loss, damage, liability or expense, directly or indirectly, caused by, or contributed to, or arising from: (i) ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; (ii) the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof; (iii) any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; (iv) the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub-clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other similar peaceful purposes; or (v) any chemical, biological, bio-chemical, or electromagnetic weapon.

Other terms & conditions apply.

Is Cyber Attack covered under Insurance Policy offered by EXIM Bank?

Standard insurance policy does not contain a specific Cyber Act or Cyber Incident exclusion, therefore a Loss due to a Cyber Act or a Cyber Incident will be payable subject to all of the terms, conditions, warranties and exclusions of this Policy, unless otherwise requested by the Exporter and provided by EXIM Bank.

Civil unrest: is this insured?

Yes, a Trade Credit Insurance policy that includes coverage for political risks can protect businesses from non-payment due to strikes, protests, or other forms of civil unrest as well as acts of terrorism.

When a buyer cannot pay due to political unrest, EXIM Bank will compensate the seller for the loss. This ensures that the seller is protected against the risks associated with doing business in politically unstable regions or during times of unrest.

It’s important to note that different policies have different levels of coverage for political risks. Therefore, it is important to carefully review the terms & conditions of the policy to understand what is covered and what is not.

EXIM Bank covers such political and war risks and defines “War or Civil Disturbance” as: (i) War- contest by force between two or more sovereign nations, carried on for any purpose, armed conflict of sovereign powers and/or declared or undeclared and open hostilities between sovereign nations including invasion and acts of foreign enemies (with certain exclusions as mentioned in individual insurance policies); (ii) Civil Disturbance- any act committed in the course of a disturbance of the public peace (where such disturbance is motivated by political reasons) by any person taking part together with others in such disturbance or any act of any lawfully constituted authority for the purpose of suppressing or minimizing the consequence of such act.

Insolvency of Buyer: Is this insured?

Yes, EXIM Bank insures the commercial risk of “insolvency” of the buyer. However, EXIM Bank shall not be liable for any Loss arising from the insolvency of the Policyholder or fraud or any other dishonest acts, omissions, or default by the Policyholder, its agent(s), or any other financial institution in the Policyholder’s country.

“Insolvency” shall occur if a bankruptcy, winding up or administration order is made against the Buyer; or in the course of execution of a judgement against a Buyer the levy of execution fails to satisfy the debt in full; or a valid assignment, composition or other arrangement is made for the benefit of the Buyer’s creditors generally; or an effective resolution is passed for the winding up of the Buyer; or an administrator, receiver or manager of any of the Buyer’s property is appointed; or the Policyholder shows to EXIM Bank’s satisfaction that the Buyer’s financial state is such that even partial payment is unlikely and that to enforce judgement or to apply for a bankruptcy or winding up order would have no foreseeable result other than one disproportionate to the likely cost of the proceedings; or an event has occurred which is substantially equivalent in effect to any of the events listed above.

Is transfer of currency insured?

Yes, the risk or the inability to transfer money from one country to another, and therefore for not getting paid can be insured. EXIM Bank insures currency transferability and convertibility restrictions, sanctions imposed by the government of the Buyer’s country or, where applicable, Guarantor’s country.

Are trade credit insurance policies standard or tailor made?

Keeping in view the current economic scenario, standard policies are prepared to cater to the larger strata of exporters. However, keeping in view the types of identified risks a separate premium slab is offered, making these policies unique and specially made for the customers.

Customised policies can be designed to cater to the individual needs of each customer, making them unique. EXIM Bank will thoroughly examine the specific circumstances and requirements of the customer, resulting in a tailored policy with a premium that is appropriately priced. Furthermore, EXIM Bank’s product known as Bank Master Policy (B.M.P.) is specifically aimed at small and medium-sized enterprises (S.M.Es.), which are affordably priced and require minimal administrative effort.

How is underwriting executed in Trade Credit Insurance?

Once an application is made for issuance of a credit insurance policy, the Policyholder will be required to provide the insurance company with a complete list of buyers to whom they sell goods on credit. EXIM Bank will obtain comprehensive details of each customer, including their company name, address, V.A.T. number, and country. EXIM will then use a credit management tool to assess the credit risk of each buyer and establish the probability of default. Further, the total cost of insuring all the Policyholder’s clients will be calculated and recorded in a credit portfolio. The insurance underwriter will determine the amount of credit limit allowed along with premium to be charged for each customer. This helps ensure that the Policyholder’s business sells goods within their credit terms and doesn’t expose themselves to excessive risk. The policy may include the time frame for pursuing reimbursement and processes & procedures to be followed to launch a compensation claim. In addition, EXIM Bank will work with the Policyholder to determine the percentage of their compensation.

What is the maximum liability?

A Maximum Liability Amount is put in place to restrict potential losses that may arise from a single policy. If the total loss incurred by a policy exceeds the agreed maximum liability in a given year, the actual loss is capped at this amount.

Is the Policyholder obliged to submit shipment details to EXIM Bank after issuance of insurance policy?

The Policyholder shall, on a monthly basis, notify EXIM Bank of the value in the Policy Currency of all goods dispatched and payments received and outstanding under any Insured Shipments, using a prescribed Declaration Form. Declarations shall be provided to EXIM Bank within fifteen (15) days from month-end, unless agreed otherwise by the Policyholder and EXIM Bank.

In case of multiple Buyers, is a limit assigned to each buyer for the purposes of Trade Credit Insurance?

EXIM Bank analyses the credit standing and financial stability of Buyers through submitted information and through a state-of-the-art dynamic data bank of over 200 million international customers. Every customer has a credit limit set for them as per the request of the Exporter, which is the maximum amount EXIM Bank will indemnify in the event of non-payment. As the Policyholder, Exporter transacts business with the buyers as usual – but now the exporter is covered up to the credit limit. EXIM Bank keeps the Policyholder, updated about adjustments to limits, if these are raised or lowered as per submitted declarations and adjustments. However, it is the primary responsibility of the Exporter/Policyholder to keep EXIM Bank informed of the adjustments and further shipments.

What is “Notification of Probable Loss (N.P.L.)”?

If the Policyholder believes that a Buyer is in financial difficulty or if the Policyholder becomes aware of any event likely to cause a Loss, the Policyholder must immediately notify EXIM Bank. The Policyholder must also notify EXIM Bank immediately if payment of any amount remains overdue from a Buyer thirty (30) days after the Due Date of Payment.

What does “Waiting Period” mean?

“Waiting Period” means the period specified in the Credit Approval commencing, notwithstanding with the Maximum Credit Period allowed under a Credit Approval, from the Due Date of Payment which period must elapse before an eligible claim becomes payable.

What will be considered as the “Date of Loss”?

“Date of Loss” for each shipment means, in the case of insolvency, the date on which the first event of insolvency occurs, and, in all other cases, the date immediately following the Waiting Period, commencing from the Due Date of Payment.

In case of Loss, what is the process to submit claim?

The Policyholder must use due care and diligence and to the extent legally permitted, take all reasonable measures to prevent and minimise Loss, and cooperate and consult with EXIM Bank in that regard. However, the Policyholder must not initiate any legal proceedings before obtaining EXIM Bank’s prior written approval. The Policyholder must ensure that all its rights to the goods and all rights against Buyers and any third parties are preserved and exercised. If required and to the extent legally permitted, the Policyholder must assign and transfer to EXIM Bank those rights or any goods, negotiable instruments, guarantees or other securities in relation to the Insured Shipments. The Policyholder must take all steps that EXIM Bank may require in connection with a potential or actual Loss, including the institution of legal proceedings, the appointment of any person to collect the debt, and the enforcement of any rights against any other party. If required, the Policyholder will appoint EXIM Bank as its agent or attorney with power in its name to take any steps EXIM Bank may deem necessary to prevent or minimize Loss or to pursue recoveries.

EXIM Bank will not, (i) indemnify the Policyholder prior to the Date of Loss or (ii) pay the Policyholder in excess of the Insured Percentage. Further, the indemnity for a Loss payable by EXIM Bank shall be subject to the Maximum Aggregate Liability, provided that, the Policyholder is not in breach of any of the terms & conditions of the Policy. If the Policyholder is in breach of any of the terms & conditions of the Policy, EXIM Bank shall have the right to retain any premium paid by the Policyholder to EXIM Bank and the sole discretion to cancel the Policy if it so chooses.

Claims should be submitted to EXIM Bank by the Policyholder through a prescribed Claim Form, along with all required information/documents. A claim should be made by the Policyholder immediately but in any event, not later than thirty (30) days from the Date of Loss. EXIM Bank will calculate the Loss as being the amount remaining unpaid under an Insured Shipment to which this Policy applies and inform the Policyholder of the outcome of claims determination by EXIM Bank within thirty (30) days of receipt of the additional evidence (if any) or, if none is required, within 30 (thirty) days of receipt of the Claim Form or at the end of the Waiting Period, whichever is the latest. Subject to the Maximum Aggregate Liability, the indemnity on a claim shall be paid within thirty (30) days of the date of the claim’s determination notice issued by EXIM Bank or within thirty (30) days of the Date of Loss, whichever is the latest.

Would there be any deductions from the claimed amount?

Deductions may be made including any amount which at the Date of Loss, the Policyholder and/or the Buyer(s) is/are entitled to credit to the Buyer’s account by way of payment, credit, set-off or counterclaim or otherwise, and, any sums which at the Date of Loss the Policyholder has received in relation to goods including but not limited to the realization of any security, the resale of any goods or pursuant to any other contract between the Policyholder and the Buyer, and, any amounts which the Policyholder has recovered following the occurrence of a Loss.

Can an Exporter get further amount after payment of claim?

Yes, after payment of Insurance Claim all subsequent salvage and recoveries made by the Policyholder and/or EXIM Bank relating to the Insured Shipment shall insure to the benefit of EXIM Bank and the Policyholder on a pro rata basis, based upon the Insured Percentage and the Uninsured Percentage and shall be applied, first, be paid to EXIM Bank and the Policyholder to recover any out-of-pocket costs, any other associated costs and expenses including but not limited to legal expenses and collection agency fees incurred by EXIM Bank and the Policyholder to recover the Loss, second, be apportioned between the Policyholder and EXIM Bank in the proportion of the Insured Percentage and Uninsured Percentage, and, third, any remaining amounts shall be payable to the Policyholder.

What is Subrogation and how is this applied in the case of Trade Credit Insurance?

Subrogation is a legal term to substitute one creditor for another, allowing the insurer to turn against the person in charge of the damage. The holder of a right of claim, called the subrogor, transmits to the beneficiary of the subrogation, called the subrogee, the claim. Subrogation allows the insurer to have the right to appeal against the customer. In the case of a credit insurance contract the company has 2 to 4 months after the first unpaid invoice to attempt to collect a claim. The company is then subrogated to the rights of the insured. The insurer may become subrograted in his rights, privileges and actions against the debtor.

Upon payment of a Loss by EXIM Bank (or its agent) to the Policyholder in respect of a claim brought under the Trade Credit Insurance Policy, EXIM Bank shall be subrogated to all the Policyholder’s rights of recovery under the Insured Contract and under a guarantee if procured by the Policyholder from a Guarantor, in respect of and to the extent of that payment and, on the written request of EXIM Bank to the Policyholder, EXIM Bank (to the extent the Policyholder is legally able to do so) shall receive from the Policyholder a transfer or assignment (by way of transfer certificate or assignment agreement, or such other manner customary for transferring the Insured Contract and the Guarantee and any related rights at the time of such transfer) so as to receive all of the Policyholder’s rights, title and interest in the Insured Contract and the Guarantee in respect of and to the extent of that payment, and unless prevented from doing so by law and/or for regulatory or confidentiality reasons, the Policyholder shall disclose to EXIM Bank and EXIM Bank shall, if required by the Policyholder in order to legally disclose information to EXIM Bank, sign an appropriate non-disclosure agreement, if required by the Policyholder. The Policyholder shall assist EXIM Bank by way of providing any documents that are required by EXIM Bank, and any other support that is requested by EXIM Bank, for the purpose of enabling EXIM Bank to substantiate its rights of subrogation vis-à-vis the Buyer and a Guarantor and to collect the debt in any court or out-of-court proceeding or settlement.

How do I get a Policy?

Visit your nearest EXIM Bank branch, our website (www.eximbank.gov.pk) to fill out an Application Form, call us on the number(s) mentioned on our website’s Contact Us page or contact us through our official Social Media pages and our representative will contact you within 24 hours.

What does a Trade Credit Insurance Policy cost?

Customers can often choose between insuring a single transaction or their complete sales portfolio. Insurance premium depends upon the quality of the importer’s financial health, country risk and other related factors. All these factors influence the premium rate widely.

How is the Premium calculated?

The pricing of the Trade Credit Insurance is determined by standard actuarial methods and is commonly sold through a whole turnover cover policy, with Premium Rates typically expressed as a percentage of the company’s overall turnover with the requested importer. Since future turnover cannot be predicted at the outset, the corresponding premium cannot be accurately determined. As a result, the contract typically includes a Minimum Premium amount as a necessary component.

Payment of all Premium in full at the time when due to Exim Bank shall be a condition precedent to any liability on the part of EXIM Bank. If the Policyholder violates any condition precedent EXIM Bank has the right to retain any Premium paid. For the avoidance of doubt, the risk only attaches to the Policy on payment of Premium when it becomes due and EXIM Bank shall not be liable to pay indemnity for any Loss that occurred during any period of non-payment, in part or in full, of the Premium.

What types of businesses are eligible for Trade Credit Insurance and for financing?

All Pakistani businesses subject to necessary due diligence.

What happens if the buyer or seller defaults on a trade transaction that is backed by the EXIM Bank? 

Client should immediately report the default of payment to EXIM Bank of Pakistan. The Claim Management Unit at EXIM Bank will handle the claim as per the procedures and policies set out in the Claims Manual.