Underwritten by Chartis, A division of American International Underwriters in Hong Kong
This Financial Protection Program is not Network Specific, it covers the Freight Forwarder Company
With The WWPC Network, Our Insurance Premium Program is separate from WWPC Membership
in order to keep the integrity of the program and funding transparent and secure.
As The WWPC Network has no control, management, ownership in GLS, we operate with no conflict of interests.
WWPC PartnerPay - The WWPC Network's Custom Designed Payment Monitoring System. Custom built program with Monitoring, Payment Reminders, Early Warning System, with Amber & Red Alert Categories sent to WWPC Membership Immediately upon any knowledge of a Member Payment Potential Issue.
WWPC CreditControl - The WWPC Network's Credit Check Facilitation Program. Designed to assist you in determining how much credit to extend and for what term lengths.
WWPC ReferenceRefer - The WWPC Network's Online Member to Member Credit Reference Program.
WWPC MediationManager - The WWPC Network's System and Process to assist in the resolution of payment disputes.
The WWPC Network enforces a strict payment policy between members.
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Freight Forwarder Network Self-funded Financial Guarantee Programs are not regulated, are not backed by any legitimate legal entity, and most are "shell games" used to promote and attract new members.
- Majority do not have the financial funding in a bank account to back up their so-called guarantee's.
- Majority pay small amounts our of their fund to show good faith and make it appear the fund is legitimate and solvent.
- Some use the practice of "they who yell the loudest, get paid".
- The Financial Solvency and Stability of the Programs usually cannot be Verified
- Legal Conflicts may exist.
- Receivership/Bankruptcy are Legal Court Proceedings that are meant to guarantee the fair distribution of debts to vendors. Payment on your debt, if not from a proper entity, could result in you having fraud and/or legal actions taken against you.
- Double, Triple, Quadruple Claims are possible if the offending Company and/or claiming company belong to Multiple Networks with Protection Plans. This alone is a legal violation of laws in most countries.
Freight Forwarder Networks are not in the "Risk" Business. They do not have the Bonding Guarantees, are not backed by Legitimate Underwriting Insurance Companies, and do not have the tools, experience, or resources required to offer such a service.
Which is WHY you cannot locally in your own market buy this type of Insurance.
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Example:
Take out your Calculator
Let's say the:
Network has 250 Members
Each Member pays USD $500.00 toward the fund each year
Let's see. That totals USD $125,000.00
If their Protection Fund says they offer USD 30,000.00 per member, well, you do the math...
4.16 Members are only truly covered out of 250 Members
Far too many people have been misled into believing they are truly protected for USD $30,000.00.
Let's do some more math:
For everyone to be protected for this amount:
Multiply USD $30,000.00 x 250 Members
The Network better have USD 7.5 Million Dollars in their Bank Account
Yes, that is USD 7.5 Million Dollars for a Network who has 250 Members and a Protection Fund Guaranteeing USD 30,000.00.
Do not allow yourself to be lulled into a False Sense of Security with the Plans
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Below are some guidelines we recommend you follow if you choose to participate in such a Program
ENSURE the Plan Does the Following:
- Make sure the Payment to the Financial Protection Program is SEPARATE from Membership Fees
- Provide All Members with List of all claims paid - Amount, Date, and Company Monthly
- Provide All Members with Pending Claims - Amount, Date, and Company Monthly
- Provide Proof of Financial Solvency of the Financial Protection Program Monthly
- Determine if the Amount in the Financial Fund is SUFFICIENT to COVER all Claims, Remember the Calculation Above: 250 Members x USD 30,000 = 7.5 Million USD
- Ensure that the Financial Protection Fund is kept in a Separate Bank Account from the General Company Operating Account - No Co-Mingling of Funds
- Proof should consist of Audited Program Information, Actual Verified Bank Statements that your Lawyer or Accountant can Verify.
- Have your Lawyer or Accountant Verify who Manages and/or Controls the Fund
- Do not accept any other documents as proof. They may not be legitimate.
- They Provide Clear and Complete Transparency of the Program to all Members, Nothing should be of a Confidential Nature to ANY Member
- Have your own Lawyer review the Financial Program Plan to give you in "Layman" language, any exceptions, any potential pitfalls, and/or non-disclosed legal commitments from the program
Please note: Already there are a few networks being reported for Non-Payment from the Protection Plan - Do your own research, you can find the names of who they are
Please Note: As a generality, Networks are not offering this program because they "want to", they are doing it to satisfy the request for same. Some feel they must offer it to compete or stay in business. So, the intent is not to perpetuate any fraud, but good intentions are exactly that~~~good intentions that are built on a foundation of fluff, backed by no legal authority or entity.
Disclaimer: We are making no claims against any Freight Forwarder Network's Financial Protection Program legitimacy or illegitimacy. We are providing this information as information and assistance for you to do so.
Sometimes common sense can escape the best of us when we truly want something to be "real
Consult with your Legal Advisor for Verification
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