Protection Plan activation terms and conditions
The protection of the Members’ credits inside the Network is undoubles one of the basis of a good working of every Network. The systems can be different same as the results, of course, all depending on the structure of the Network itself.
In this respect, the Management of ALN decided to include a Protection Plan, as part of the benefits of being a member of the network.
Being same included in the membership fees, below are the terms and conditions of the Protection Plan:
- The Protection Plan works only for credits claimed with other ALN Members;
- The adhesion to the Protection Plan will become effective with payment of the Membership Fees invoice and the acceptance of the rules and ethical code;
- The Protection Plan shall only be appealed in case of unpaid invoices and bad debts;
- For any other debts resulted from different situations ALN Management will revise and decide accordingly. Anyhow, for such events, members must have their own Forwarders Liability Insurance;
- ALN Management decisions are not questionable;
- The suggested payment terms for the Network are of 30 days from the invoice date. Different agreements between Members are accepted but should be no longer than 60 days, invoice date;
- The Members are obliged to inform the ALN Management within 60 days from the expected payment date, therefore within a maximum of 120 days from invoice date. This point is mandatory for the activation of the PP and in the common interest of all ALN members;
- Mandatory: Before offering or accepting business, we request to check with the ALN Team and confirm if the member is holding a valid membership in the group;
- The Management shall receive the claims fully documented with copies of the invoices and all mails/correspondence exchanged with the Debtor. The Management will take the needful time to examine the situation and to try to recover the amount due, before proceeding with the application of the PP.
Activation of the Protection Plan:
- The PP will be activated per statement of account between two members;
- ALN management will recognize up to a maximum of 6 times the amount of the fees paid per member;
- Before to activate the PP, ALN Management will take the needful time on trying to recover the amount from the Debtor;
- The final recognition will be concede based on the Statement of Account, respecting the limits mentioned at the above point n. 7;
- For situations where the claim amount is less than the 6 times the fees, ALN will recognize 60% of the unpaid credit between two members;
- In any case, the management will recognize to the creditors, totally, up to a maximum of 35% of the total fees collected annually;
- In the event that the total number of claims accepted exceeds 35% of the annual fees, the management will proceed to a pro-rata liquidation;
- The amount can be reduced by the shared responsibility of the Creditor;
- In the case that the Creditor Member will be able to recuperate, through other ways, partially or totally his credit, he must inform immediately the Management and return to Africa Logistics Network the amount received, in the same percentage of the paid claim;
- In the event of non-payment, ALN will proceed to inform all members, while suspending the member involved, maintaining opened the possibility of a cancellation. In any case, ALN is authorized to an attempt on recovering the debt with the help of FDRS – Freight Debts Recovery System or other debt collection services considering the related consequences.
Ex 1 :
A claim for EUR 12000. ALN will recognize a maximum of 6 times the amount of the fees paid by the member for that current year, therefore for the African members EUR 750 x 6 and for the extra-Africans 1500 x 6.
The above, always referring to the above point 6).
A claim is EUR 8000, so less than ex. 1500 x 6, ALN will recognize as per indicated at above point 5).
- The confirmation of the Protection Plan affiliation is understood once the Acceptance Form is signed, sealed and returned. The network will issue an invoice for the membership fees;
- PP applies from the moment of the renewal of the membership and/or new membership;
- Exceptions are allowed in favor of the losing member;
- The claim recognitions will be due at the end of the current year.
Africa Logistics Network Management