أحكام التأمين على المخاطر الائتمانية للعمليات المصرفية

Abstract EN

Loan insurance is a document associated with specific loans or a particular line of credit, the end result of which is to provide compensation and protection from potential borrowers' risks, resulting mainly from the inability to pay.

in return for paying a certain amount to the alternative party by the borrower, insurance is one of the most important and widespread means of risk transfer, as the insurance company (the insured) compensates the banks (the insured) exposed to risks for the potential material loss that they incur as a result of the occurrence of those risks (the insured).

in return for a specified amount paid in advance, called the insurance premium.

the insurance may be from the creditor (the bank) or by the debtor, so the insurance is considered as a guarantee, especially in the second case when the debtor undertakes insurance because it provides the creditor with advantages similar to what the guarantee provides to the creditor.

the credit-granting bank benefits from the information provided by insurance companies regarding the ability or creditworthiness of the debtor who obtains credit through framework agreements that bring together both parties, which provides the ability for the bank to grant credits with lower interest and greater security.

the philosophy of insurance on credit risks is based on the principle of participation and transfer of risks and security.

as for participation, we mean that the insurance company participates with the insured bank in bearing those credit risks, and therefore the damages are distributed in the event that they are realized to more than one party-especially in the case in which there are multiple insured parties-there may also be a role for the insured (insurance companies) in assisting the bank in making its credit decision through the information it provides to it about the credit applicant, as there may be a framework agreement between them.