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SAFE Payment Protection

SAFE, is a payment security guarantee plan for the benefit of NAP members. The SAFE plan is mandatory for all members and works in conjunction with the NAP Credit Alert System.

Credit Alert is a customized intranet tool that allows NAP members to report payment issues to the NAP Credit Control Database. Members are then entitled to claim their receivables.

Overview

For the benefit of its members, Neutral Air Partner has established Payment Security Guarantee Plan, SAFE. Enrollment in the SAFE plan is mandatory for all members. The SAFE plan works in conjunction with the NAP Credit Alert System.

NAP Credit Alert is a customized web tool that lets members report past-due receivables older than 60 days, upload statements of accounts, and email correspondence to the NAP Credit Control Database. After reporting all information, and getting it approved by NAP management, members are entitled to claim their receivables through the SAFE plan, in the event a NAP member fails to make payment.

The SAFE plan was designed to assist in resolving payment problems caused by bankruptcy and insolvency, as well as delinquent and overdue debts owed to and from other NAP members.

The SAFE plan can be used at the discretion of NAP for other situations and can guarantee up to USD 25,000 for each year of membership, with a maximum of USD 100,000 per year , for active members that have been of NAP for 4 years or more.

Conditions

  1. The maximum amount payable in a single incident is USD 25,000 per year for each year of membership, up to a maximum of USD 100,000 for active members with more than four years of active membership. For example, a company that has been a NAP member for two years will receive $50,000; a company that has been a member for one year will receive $25,000; and a company that has been a member for four years or more will receive up to $100,000.
  2. The SAFE plan will pay up to $250,000 annually for qualified claims submitted through the NAP credit alert system. If the cumulative amount of qualified claims in a given year exceeds $250,000, the overall payout to members will be divided proportionately.
  3. A member can receive funds under the SAFE plan provided they agree to hand over any future debt recovery to the NAP management (Executive Networks Ltd.) and assist the NAP management in collecting and/or litigating the debt.
  4. A member is eligible for payment under the SAFE plan if its receivables are reported through the NAP credit alert system not earlier than 60 days and no later than 90 days after they are due. In the absence of such action, the claim will be deemed invalid, and the member will be unable to obtain reimbursement via the SAFE plan.
  5. The SAFE plan will reimburse members if a credit limit agreement between two members with a maximum $25,000 limit is in place.
    The SAFE plan will not cover single invoices that exceed $15,000 per shipment unless the NAP management has provided written proof of credit approval. Such a transaction is regarded as special cargo and may be subject to specific terms and agreements, deadlines, dead freight, or disputes.
    The $500 annual SAFE plan fee, the total amount of coverage, and the terms and conditions of the plan are subject to change without further notice.
  6. Claims are only eligible for payment if a valid credit alert has been filed and the SAFE plan procedure has been followed in its entirety. The SAFE plan cannot be applied to claim payment if delinquent debts are not reported.
  7. Claims are deemed eligible when billed under the company name on the first NAP membership registration agreement signed at the time of joining NAP. In addition, only invoices corresponding to offices or city branches whose members are registered will be eligible for participation in this fund (i.e., if a company only registers its New York office but has several other branches in the USA, only invoices covering freight originating and routed from their New York office will be considered eligible). Members with unregistered branch offices can have access to the SAFE plan in the future by registering their branch offices at a cost of $750.00 per new branch and joining the fund process.
  8. Email exchanges, invoices, and airway bills are the documents that will be considered. When an Airway bill is consigned to a branch of a member that is not registered in the SAFE plan, but the invoice is invoiced to the headquarters, it may be suspected of fraud after a thorough investigation of all the facts.
  9. Claims are only valid if made and invoiced when the claimant is a NAP member, from the date of enrollment (when the membership fee is received by NAP) on an “active” status until the membership expires. Claimant members additionally belonging to another logistics network with a financial security guarantee plan or having external private insurance that covers all or part of the obligations will have their claim against the SAFE plan examined after payments have been made by the other network or the insurer. Members who fail to declare membership in other networks’ financial security guarantee plans or an active private bad debt insurance plan will not be protected by the SAFE plan if fraud is suspected.
  10. Claims will only be considered if an invoice is issued within seven business days of a shipment’s departure or arrival.
    It must be emphasized that the SAFE plan’s mechanism only protects against bad or delinquent debts, bankruptcy, or insolvency, not operational errors, and is only applicable to the transportation of general cargo. Claims will not be accepted unless approved by the NAP Management for non-conformance with service levels, shipments of personnel effects, perishables, time-critical deadline arrivals, temperature control, VAL, live animals, events and exhibitions, dangerous goods, shippers and consignees associated with Internet mail services such as E-Bay, lost or damaged cargo, invoices covered by members’ private insurance coverage, third-party damages, currency exchange fluctuations, goodwill payments, illegal transactions, legal fees, interest, etc.
  11. SAFE Plan adopts a Force Majeure policy that discharges NAP from any liability or obligation when an extraordinary event or circumstance beyond our control, such as war, sanctions, strikes, riots, trade bans and restrictions, crime, or an “Act of God” (such as hurricanes, flooding, earthquakes, pandemics, or volcanic eruptions), occurs.
  12. Disputes are investigated and subject of an evaluation and mediation process during the annual NAP general conference. Two founder members of NAP, selected by NAP’s management, will act as mediators. Mediators and NAP management will each have one vote (for a total of three votes) in order to reach a decision on a particular dispute, unless the parties have already reached a settlement during the evaluation and mediation phases. In order for a member to be eligible for an investigation, evaluation, and mediation process, disputes must be submitted within sixty days. Claims over disputed invoices between two members are not eligible for reimbursement under the SAFE security plan unless approved by NAP management.
  13. Payments into the SAFE plan are not refundable to participants upon leaving the organization.
  14. Members agree to submit themselves to the exclusive jurisdiction of the Hong Kong court, which governs the scheme. Executive Networks Ltd. (as Neutral Air Partner) retains the right to the final interpretation of the above content.
  15. SAFE Plan is neither an insurance product nor an insurance-related service or insurance brokerage. SAFE is a tool for monitoring payments and credit risk that is offered as a value-added service to NAP members, aiming to mitigate the credit risk members face when conducting business within the network.