PURPOSE AND SCOPE

The logistics business involves numerous new contacts every day, so the matter of secure payments is especially important for it. FCN provides an essential layer of financial safety, encourages business expansion, and supports logistics company reliability on a global scale.

COMPENSATION LIMITATIONS

• If a claimant member has insolvency or other coverage with any other network for the same member, he is not eligible for the insurance.
• If freight invoice is not paid and company bankruptcy. Only Freight Invoice cover.
• If transactions are made by mutual understanding only and a member has no payment protection, he is not eligible for the claim. Both members are required to have PPS to get a claim.
• The claim cannot be accepted if the business is done before the policy's commencement date. Please note storage, demurrage, detention, duties and taxes are not covered,
• Members will not be entertained to do business or claim for the protection program even after the notification of any suspended/ terminated member of the group is announced. We request the member to carefully read each announcement/circulation message from the FCN admin and forward the same to your respective department in your office.
• Your Payment Protection or FCN exclusive membership needs to be at the time of the claim 100 % intact / in order and paid.

CLAIM PROCESS UNDER PPS

The following documents are required to prepare the compensation.

• Unpaid Invoice related to freight forwarding, project handling or transportation.
• The cost of the transportation from A-Z.
• Copy of 3 reminders should be intimated in reasonable interval.
• Creditors must report the default within 60 days from the date of Invoice.
• The creditors need to have the tax registered address and director details of the company indeed without this details there are no collection proceeded possible.

For all claims, a deductible of 10% with a minimum of USD 1,000.00 will apply. The waiting period for protracted default is 45 days after the issuing date of the concerned invoice.

TO KNOW MORE ABOUT PPS

1. FCN Members will have a financial security scheme which guarantees members payment for freight forwarding transaction between Members (hereinafter referred to as “PPS”. this is for the exclusive use between FCN Members only. No coverage is provided for transactions which involve non-members of FCN, the cost of PPS is USD 300 per member per year, covering USD 10’000 for pending invoices between active FCN members per year.
2. Members who find themselves in dispute(s) over non-payment by another Member may apply to FCN HQ for mediation.
3. Members are obliged to contribute to FCN annually. This contribution has to be made by all Members, including subsidiaries.
4. PPS is set up as a reserve for the Members to utilize in the event members encounter the non-payment with another Member. PPS serves as a form of compensation for the aggrieved party.
5. As Members, the minimum sum claimable under PPS shall be USD $1000 up to a maximum sum of USD $10,000. PPS has a ‘deductible’ feature. A ‘deductible’ is the minimum claimable sum before a member can file a claim under PPS.
6. In order to start with this PPS system we need clear minimum total fund of USD 30’000 into FCN HQ bank account, that means contribution of 100 FCN partners (USD 300 X 100 = USD 30’000) in 1 one year, or for example 100 FCN in 2 two years. With less amount of USD 30’000 will not be possible to start the payment protection scheme PPS, exact amount in FCN account will be constantly informed by FCN team via emails. Payment Protection Scheme (PPS) is applicable for the business from the date of Valid Protection Policy.
7. The monies held under FCN are limited to what is available for members to use. In the event, the monies held under PPS are fully utilized, and then there will be no further amount available for members. The PPS being the fund for members is limited to the amount available.
8. Members shall apply to FCN team for mediation during which their matters will be heard by the FCN team to determine the outcome of the dispute. The FCN team in HQ will act independently and their decision on the outcome of the dispute is final.
9. In the event FCN is not able to resolve the dispute amicably between Members, FCN team will use its discretion to either dispense with the mediation and/or suggest to the parties that they find an alternative method of resolution.
10. Members are to note that the intention of the FCN is to facilitate and provide an amicable and effective resolution between Members.
11. The resolution of the dispute between parties shall be dealt with in strict confidence and documents or any form of materials used during the course of the resolution shall be treated with strict confidentiality.
12. Mediation may be in electronic mails and letters, FCN may require parties to provide documents for review in relation to the mediation.
13. Credit terms between FCN members is 30 days. If any invoice exceeds 60 days, please notify FCN immediately for further follow up on your behalf.
14. All claims made by Members must be filed within ninety (90) days from the date of invoice.
15. No claims shall be accepted by FCN if the invoice is less than sixty (60) days old.
16. All pay-out from “Payment Protection Scheme” PPS, for disputed cases/ claims will make known to all members and FCN team will notify all FCN partners via email.
17. FCN must have 100 members or equivalent in money: USD 30’000 in PPS funds in order to accept the claims, with a less amount or less members inscribed and cooperating with PPS - Payment Protection Scheme as USD 300 per year, FCN cannot accept claims from the members, Total funds of all FCN will be always informed via email to all FCN members.
18. Members who don’t renew the membership will be out of FCN and they cannot claim their pending payments.
19. PAYMENT PROTECTION SCHEME funds are not repayable; this fund is not redeemable and serves for all FCN active members who are current on their annual memberships.
20. FCN team & PPS will accept 3, 4 and maximum of 5 (five) claims per year or equivalent of: USD 30’000 so, for example if first 3 claims are for USD 10’000 we only can accept these 3 claims in the year 2025, but for example if first 5 claims are in average USD 6000 we only can accept these 5 maximum claims, for next year 2026 in case of less amount of USD 30’000 we need to wait for contributions looking for total minimum amount of USD 30’000 in order to start again the payment protection scheme.
21. Only 3 cases will be admitted per member per year or equivalent of USD 10’000 in total, so, for example if your first case is for USD 4’000 your second and third cases per year just can be per USD 3000 forming in total maximum of USD 10’000 per year / per member.
22. PAYMENT PROTECTION SCHEME funds will increase every year due new FCN members, exact amount will be informed at right time for the FCN team, so in the future is possible than FCN alliance can accept more quantity of claims per year, and more cases per member, all will depends of total PPS funds in the FCN bank account.
23. FCN Team will analyses all cases minutely in case of fraud we will report to all NETWORK ALLIANCES AROUND THE WORLD and around 30’000 agents worldwide.
24. FCN will be NOT available to accept any claim in 2025, because we must receive the PAYMENT PROTECTION SCHEME minimum funds in our account from all FCN members, in order to proceed with PPS, also in 2025 Payment Protection Scheme will be available depending of members number, we need at least 100 (One Hundred FCN MEMBERS) that already paid USD 300 as PPS, or for example 100 FCN members in 2 years, forming the total minimum amount of USD 30’000 as PPS fund in year 2025.
25. PPS will cover pending payments between active FCN members, but PPS is not a claim or treat as an insurance for goods damage, good lost, cargo damage or others similar damages between FCN members, PPS system only apply for PENDING FREIGHT INVOICES between active FCN partners.