Export Credit Insurance

The Export Guarantee Fund of Iran (EGFI) is a state-owned institution under the Ministry of Industry, Mine and Trade, established to support Iranian exporters by providing export credit insurance against commercial and political risks. These insurance policies protect exporters against threats such as non-payment by foreign buyers, political instability, currency transfer restrictions, or buyer insolvency. This tool enables exporters to enter international markets with greater confidence and offer credit sales to foreign buyers with reduced risk. Abarlink, through authorized intermediaries of the Export Guarantee Fund, offers these insurance services to interested exporters.

1. What does export credit insurance cover? Is it only applicable when the buyer defaults?
✅ It covers both commercial risks (such as buyer default, insolvency, delayed payment) and political risks (such as currency transfer restrictions, war, sanctions, or government-imposed bans).

2. If I sell goods on credit to a foreign buyer and they fail to pay, how can I claim compensation through the insurance?
✅ You must submit your contract, shipping documents, and evidence of non-payment. After review and approval, EGFI (or its agent) compensates you partially or fully based on the terms of the policy.

3. Which countries are eligible? Can I insure exports to any destination?
✅ Most countries are covered, but some may carry limitations or higher premium rates. EGFI provides an updated list of eligible and restricted countries.

4. What documents do I need to apply for insurance through Abarlink?
✅ You will typically need: company ID, foreign buyer’s information, draft contract, payment terms, product details, and shipment data. Abarlink or its official broker will assist you with the process.

5. What is the cost of this insurance? Does it vary by country or product?
✅ Yes, premiums vary based on country risk, buyer profile, credit terms, and product type. Rates usually range from 0.5% to 2% of the contract value.

In addition to this, Abarlink’s service fees will also be added depending on the scope of services provided (consultation, document preparation, policy follow-up, etc.).

6. What’s the maximum coverage amount the insurance can provide?
✅ Depending on your creditworthiness and the EGFI policy, coverage can range from tens of thousands to several million USD. Limits are assessed during the application process.

7. Can I use the insurance certificate to get financing or credit from banks?
✅ Yes. You can assign the policy to a bank as collateral to obtain export financing or working capital.

8. If the buyer is unable to pay due to political issues (e.g., war, sanctions, or blocked currency transfer), will the insurance cover the loss?
✅ Yes. If it’s proven that payment failure was due to political force majeure, the policy applies.

9. How long does it take for EGFI to assess and pay a claim?
✅ Typically, 30 to 60 business days after the complete documentation is submitted and validated.

10. Does Abarlink only refer clients to EGFI, or can it manage the full process on my behalf?
✅ Abarlink works with licensed EGFI brokers and can manage the full process for you — from consulting and documentation to policy issuance and follow-up.

11. Can I consult with Abarlink before signing a sales contract to ensure the deal is insurable?
✅ Yes. Abarlink can request a preliminary risk assessment to evaluate if your proposed deal is eligible for coverage.

12. Can I insure a contract that I’ve already signed or shipped?
✅ Sometimes yes — if the goods haven’t been shipped or the credit period hasn’t started. It must be evaluated on a case-by-case basis.

13. How does this insurance differ from a bank guarantee or letter of credit (LC)?
✅ Insurance is usually cheaper and faster to arrange, and it doesn’t require buyer-side bank coordination. However, it’s a risk-mitigation tool, not a payment guarantee from a bank like an LC.

14. Can Abarlink help me access country risk or buyer credit reports?
✅ Yes. Through its brokers, Abarlink can provide country risk assessments and credit history reports for buyers.