The Authority had issued guidelines on trade credit Insurance on 13-12-2010 vide circular ref IRDA/NL/CIR/Cre/205/12/2010, to normalize the business of Credit Insurance in India.

In the topical times, the changes in economy, especially in micro, small, medium enterprise sector has boosted the need for trade credit and has improved the scope for the credit insurance sector, manifold.

Therefore, in order to give fillip to the enlargement of credit insurance market, it is felt essential to revisit the above guidelines which control the credit insurance business in India.

As per your requirement here is the Basic Requirements of a Trade Credit Insurance Policy

An insurer shall present trade credit insurance policy only if all the following minimum requirements are met:

1. Policyholder's loss is non reception of trade receivable arising out of a trade of superiors or services.

2. Policy-holder is a supplier of goods or services, in consideration for a fair market value.

3. No trade credit insurance policy shall cover factoring, reverse factoring, bill discounting or any other comparable arrangement

4. Policy-holder has a customer (i.e. Buyer) who is accountable to pay a trade receivable to the Policy-holder in return for the goods and services conventional by him from the seller, in accordance with a policy document filed with the insurer.

5. Policy-holder undertakes to pay premium for the entire Policy Period.

6. Any other requirement that may be specified by the Authority from time to time.