We have already talked about the different instruments that guarantee transactions in Market. In this article we will tell you about the Guarantee Policy, who issue them and their respective costs, among other frequent questions.
The guarantee policy is framed within the most well-known and used instruments when guaranteeing a transaction of products and services in Market. This type of documents, as well as for example the guarantee card, ensure that the payment is made quickly and effectively.
Guarantee policies, or also called contract compliance policies, provide certainty to companies that trade in any world, whether public or private. In the case of Market, it is a document that helps commercial relationships reduce the risks that one of the parties does not obey the previously agreed promise.
The aforementioned, generates the necessary security in the Market environment through the ComparaPress platform, enabling transactions with the lowest possible risk. Its name clearly indicates: it faithfully guarantees compliance by the secured party (or also called the policyholder), as promised in the contract (or a legal provision), and is obliged to pay the insured for a certain amount (amount insured) the possible damages that could be caused by the defaults noted.
They are the simile of bank guarantee tickets. These policies have the power to be payable 30 days after executing the loss, having notified both the contractor and the company of non-compliance with the guaranteed obligations.
In this type of policy the insured is the one that determines the amount of compensation and is paid against the requirement of this, without the need of a liquidator, within 30 days. It is similar to the bank ticket.
They are not equivalent to bank guarantee tickets, in terms of their speed of payment, because they are subject to the procedures and settlement periods established by Decree No. 863 of the Treasury, dated October 3, 1989, published in the Official Gazette. of April 5, 1990.
This type of policy is distinguished by the intervention of a liquidator at the time of an accident, who determines the amount to be indemnified and quantifies the loss. The liquidator has a period of 90 days to submit a report and the compensation is paid after 30 days following the report of the liquidator.
Bonded or Contracting: it is the party that takes the policy and pays the premium. It is who must comply with the obligations promised by the policy.
Insured or Principal: favored by the policy and who should be compensated in case of loss.
Insurer: who issues the policy.
Insurance companies, although not all. Obviously each institution will require different documentation and will have certain requirements to issue it. In spite of the above, it is usual that the variables to be considered are the following:
If the amount to be guaranteed is up to 1,000 UF you just need to fill out and send a file and the contract to be guaranteed. The card is a classic situation of each financial institution.
If the value to be requested exceeds 1,000 UF, in addition to the above, the following documents are usually requested:
The cost of the same will depend on the amount, time and the company (according to the risk that they qualify for each company).
It will depend on what other options you manage or have as alternatives.
To understand this comparison, we must clarify that the Certificate of Bond is an instrument that is equivalent to a traditional guarantee ballot. In essence, it aims to reduce barriers to entry to suppliers by enabling a Market with broad access.
The same Market on its website clarifies that the guarantee of ‘Bail Bond Certificates at sight’, is an instrument granted by a Reciprocal Guarantee Institution, through which it is constituted as a bond of obligations of a beneficiary to a creditor, and that is regulated by Law N ° 20.179. This instrument must be payable at sight, in accordance with the provisions of article 68 of the regulations of Law No. 19.886, contained in Decree No. 250 of 2004 of the Ministry of Finance. The Certificate of Bond is issued payable to the view and has irrevocable character. If there is a breach of the contract guaranteed by this instrument, it will always be paid at its sole presentation, and there will be no opposition or recourse whatsoever to exempt the Institutions of Reciprocal Guarantees from their payment. Public institutions can include this instrument in their purchases and contracts made through the state bidding platform www.mercadopublico.cl., Section ‘Guarantees required’. The Public Procurement Directive No. 7 ‘Instructions for the use of guarantees in procurement processes’ contains information on the financial instruments that represent a bond in favor of who is issued and the use and guarantees of them.
It is very similar to the one requested by most financial entities:
If it is a new company that does not have more VAT information, you will have to go directly to the IGR. More information about Reciprocal Guarantee Institutions, you will find it in the Superintendency of Banks and Financial Institutions of Chile.
It is important that you report very well on the types of guarantees that exist, that you make the comparisons on which one suits you best and that you choose the one that best suits your needs and type of company.