Implications of COVID-19 on Credit Insurance

Due to the direct and indirect implications that the COVID-19 virus could have on businesses in South Africa, we would like to draw attention to all Credit Insurance Policy Holders.


You must notify The Insurer (or Apio) without undue delay of the occurrence of any circumstance or event likely to cause a loss. Such a circumstance or event includes:

  • a request by an insured debtor for an extension of the due date of payment beyond the maximum extension period referred to in this policy
  • the imminent insolvency of the insured debtor
  • the imminent or actual commencement of business rescue proceedings in respect of the insured debtor
  • you becoming aware of unfavourable information concerning the insured debtor’s financial position, reputation or debt payment performance
  • the insured debtor refusing to take delivery of any goods ordered or services commissioned
  • you having reason to believe that the insured debtor is unable or is likely to be unable to perform or comply with the terms of the credit agreement.

Apio requests that all policyholders consider the impact that COVID-19 could have on your business and that of your clients and notify us without delay should any such adverse information present.

Further to the above we draw your attention the prevention of loss clause in most Credit Insurance Policies:


You must exercise due care in granting credit to your debtors with regard to both the amount and the period of credit, and must manage all business which is covered under your policy with at least the same diligence and prudence as you would reasonably be expected to exercise were it not insured.

The exercise of due care includes ensuring that orders placed for goods emanate from your debtor and are not fraudulent and that goods are delivered to or are collected by your debtor or its duly authorised representative pursuant to a valid and genuine credit agreement.

Any instances where a policyholder knowingly delivered goods or rendered a service to an insured debtor where the COVID-19 is a concern (and there are no contractual provisions forcing the policyholder to do so) will be taken into account when assessing a loss event.

If you have any questions, please do not hesitate to contact us.