1. Presentation on proposed credit insurance policy to The Chemical and Alkali Merchants’ Association O R I G I N

2. PROTECTION AGAINST ACCCOUNTS RECEIVABLES Insolvency of buyer : Buyer legally declared insolvent / bankrupt Protracted default : Buyer fails to pay, but not declared insolvent / bankrupt CREDIT INSURANCE BENEFITS Asset security : Assets receivable secured Cash flow protection : Secures unforeseen credit loss Risk Management : Hedge against unforeseen Commercial & Political uncertainties Increases borrowing power : Bank finance convenience Compete effectively : Business from L/C to clean credit possible Expand sales : New buyers / market exploration possible CREDIT INSURANCE : KEY TERMS Terms of Payment Buyer Limit of Liability Country Limit of Liability Policy Limit Liability Discretionary Credit Limit O R I G I N CREDIT INSURANCE POLICY (EXPORT AND DOMESTIC RISK) CONCEPT OF CREDIT INSURANCE CREDIT INSURANCE POLICY STRUCTURE Non qualifying losses Aggregate deductible Waiting period Insured % (Indemnity)

3. WHAT IS NOT COVERED IN CREDIT INSURANCE POLICY Cash and L/C sales Wrongful, dishonest acts or omission by insured or its agents Disputed debts or receivables, which are legally not enforceable Any sales done with knowledge about payment not to be received / buyer insolvency known / substantial overdue situation Supplies made to Associated Companies; Government Agencies Sales in excess of limits approved by insurer Violation of Credit Management procedures Nuclear explosion & contaminations Devaluation / depreciation of currency Consequential losses and interest payments Sales prior to date of inception CREDIT INSURANCE : CLAIM PROCESS Stop sales beyond 60 days from default Provisional claim to be lodged on 90 th day of default Claim receivable after 180 days of due date Maximum of 80% of claim amount sanctioned Claim amount up to annual aggregate deductible amount not sanctioned O R I G I N CONCEPT OF CREDIT INSURANCE …..

4. CREDIT INSURANCE : PRICING BASED ON Industry risk Country risk Buyer risk and concentration Past bad debts Terms of payment Quality of Credit Management Deductible level (based on sales & loss experience, buyer / country spread, bad debt history, insured’s risk appetite CREDIT INSURANCE : PROCEDURE FOR POLICY ISSUE Submission of proposal form Non-binding indication of terms as per under-writer’s assessment Analysis of top 10 buyers Setting credit limits for existing customers Final acceptance Payment of premium & inception of risks cover Issuance of policy document Period declaration of turnover, overdue debts and debt aging CREDIT INSURANCE : PREMIUM INDICATION 0.05% - 0.07% on the sales turnover (based on insurable turnover of more than Rs. 1500 cr and negligible bad debts) Firm premium can be finalised on submission of proposal for with sales history for last 2 years, latest outstanding status, buyer distribution, default history for past 2 years MUST DOCUMENTATIONS Invoice with approved buyer and payment terms approved under the policy Shipping documents – proof of acceptance by the buyer Legal process to be initiated against the buyer (in case of PDCs and depending on the reinsurer) O R I G I N CONCEPT OF CREDIT INSURANCE …..

5. CREDIT INSURANCE LIMITATIONS Credit Policy requirement : Good Credit Management Practice should be in place before Credit Insurance takes off Policy obligations should be adhered to in strict manner Factoring : Though Credit Insurance is an indemnity against bad debts, it does not finance receivables (not allowed by the Regulator) O R I G I N COMMON REJECTION REASONS EXPERIENCED Buyer overdue at the time of inception by >60 days Premium insufficient to take care of shipments under default Overdue reporting not done in time Sales to that particular buyer not declared in the sales declaration For buyers under discretionary limit, the exposure as per the policy clauses are much lower than the amount of DCL approved Limits approved on the buyer is different than the one invoiced (similar styles of different group co.) Payment terms given to the buyer are different than the maximum terms approved by the insurance company Buyer limits not approved due to oversight Buyer exposure at the time of the claim much bigger than approved limits Shipments made to the buyer when the buyer was overdue by 60 days Extension of credit period not taken before the expiry of extension period, in case client does not wish to notify a claim Invoice carrying advance / CAD terms but sold goods on credit (error in invoice) Temporary limit approved on a buyer which has not been extended for further validity and invoice falling post expiry of limit CONCEPT OF CREDIT INSURANCE …..

6. INSURANCE COMPANIES New IndiaITGI Tata AIGSBI General ICICI LombardECGC Raheja QBEBajaj Allianz LARGEST BROKER in PRIVATE SECTOR In terms of team size and number of clients - pan India Origin works with ALL the major Reinsurers Our wide knowledge-base and strong relationships with the credit insurance companies ensures the best deal for our clients > 50 man years of credit insurance experience POLICY UNDERSTANDING Understands your requirement and current credit risk environment Suggests appropriate product and insurance company Gets limits approved on all your buyers - increase Line of Credit to larger key trading partners Facilitates training of clients in related software offered by the insurance company ROLE OF ORIGIN – PRE INCEPTION Guides you in disclosing technically correct information to the insurance company Conducts a comparative study of quality and pricing of cover Works towards getting all your buyers and limits approved Identifies specific requirements based on nature of business and company model Coordinates on your behalf with the insurance for relevant changes to be made to specific clause/s Arranges for higher limits for buyers to increase your volumes Advises you on the policy wording before policy inception Incepts the policy on your behalf which helps you borrow at an aggressive rate Origin Advantage O R I G I N

7. CLAIMS ADVISORY Advises you on what information is essential to disclose and in what format Gives a general list of documents that will be required in case of a claim well before the inception on the policy Coordinates with the debt collection agency for understanding the recovery stage and submit necessary details required by them Follows-up with the insurance company on client’s behalf to get a status on the claim pending and also get the claim processed POLICY MANAGEMENT Follows-up with clients on regular basis to ensure that they are not over-exposed on any buyer Ensures compliance of the terms and conditions of the policy Sends reminders to our clients to observe obligation under the policy like submission of declarations, payment of premium etc. Applies for higher limits on buyer during the policy period, if required Assists in administering all your endorsements and amendments under the policy, track your renewals and undertake the renewal process with the respective credit insurers TCRA Detailed inspection of credit receivables from domestic & overseas buyers to examine the need for credit insurance cover Checks the adequacy & correctness of the existing credit insurance policies and make appropriate recommendations on the same Examines the appropriateness of the product chosen with the credit insurer and also the premium rates charged on the policies held by client and ensuring that the premium outgo of the company is kept to a minimum without compromising the coverage Carries out detailed review of policy terms and conditions to ensure that there is no inadvertent breach of the same, and suggesting corrective action to ensure that the claim, if any, is not jeopardized Provides guidelines on the basis of existing systems being followed for monitoring payment receipts, defaults, bad debts etc. to enable the client to take necessary action so that they are adequately covered in the event of loss Recommends additional covers, if required, and works out the cost-benefit analysis for availing the same O R I G I N Origin Advantage…..

8. Head Office : 206/A, Skyline Epitome Kirol Road, Vidyavihar (West ) Mumbai - 400086 Land line: 022 - 6672 3000 Branch Offices : New Delhi, Chennai Thank You O R I G I N Contact details : Keval Rathod : 91 – 9867 374866 022 – 6672 3007 Manish Punjabi : 91 – 8108 777531 022 - 6672 3004 Origin Insurance Brokers India Pvt Ltd Member Newstead Group Website : www.originindia.inwww.originindia.in