MGP Policy
1. PURPOSE AND SCOPE OF COVERAGE
The purpose of the MGLN Insolvency Insurance is to provide financial compensation for losses incurred due to non-payment of invoices related to transactions between MGLN members, resulting from insolvency or protracted default. The waiting period for claims due to protracted default is 45 days from the date of the oldest unpaid invoice.
2. COMPENSATION LIMITS
The insurance coverage is subject to the following annual limits per MGLN member:
- Year 1: Up to USD 10,000
- Year 2: Up to USD 15,000
- Year 3: Up to USD 20,000
- Year 4: Up to USD 25,000
A deductible of 10% applies to all claims, with a minimum of USD 1,000. The waiting period for protracted default remains 45 days from the invoice date.
3. EXCLUSIONS FOR DUAL COVERAGE
If the claimant member is covered under a similar policy by another network for the same debtor, they are not eligible for compensation under the MGLN policy.
4. TRANSIT DELAYS
Insurance coverage does not apply to delays in transit caused by agents or airlines.
5. NATURAL CALAMITIES
Losses or damage to cargo during transit due to natural disasters or unforeseeable events are not covered.
6. ELIGIBILITY REQUIREMENT
To be eligible for a claim, the claimant must have an active protection policy and meet the following conditions:
- Freight invoice remains unpaid
- The debtor company has declared bankruptcy
7. CREDIT TERMS BETWEEN MEMBERS
The maximum allowable credit period for invoices between MGLN members is 30 days.
8. NOTIFICATION REQUIREMENT
Members must notify MGLN Management before the 45-day period from the invoice date expires, in case of non-payment.
9. INFORMAL AGREEMENTS
Transactions conducted based on mutual understanding, without formal payment protection, are not eligible for claims under this policy.
10. FINAL DECISION AUTHORITY
All final decisions regarding claims and eligibility are made by MGLN Management in consultation with the Council Members./MGP-Policy