Payment Protection Plan
THE MARCOPOLOLINE GROUP
PAYMENT PROTECTION PLAN Regulations 2017 edition. Effective 01.01.2017
- Purpose and object of the protection PAYMENT PLAN (PPP)
The MarcoPoloLine Group, will deliver for its members a fund (PPP Fund) for the conditional coverage of defaults among members.
Payments from the fund are subject to proven defaults for services rendered between the members. Any payment from the fund will be limited as specified below. Where continued credit was provided.
- Management of the PPP fund
The Directors of Marco Polo Line AG manage the PPP funds according to the Regulations of the PPP and is the sole and final decision-making authority for services from the PPP funds.
- Participants in the PPP
Participation in the PPP is mandatory for both full members and provisional members of The MPL GROUP. If a member ceases its membership with MPL for whatever reason, all claims against the PPP fund will be terminated with immediate effect.
- Financing of the PPP fund
The PPP fund, in Euros, will be kept in a separate bank account from the assets of Marco Polo Line AG.
The cost of PPP is EUR 300 per member per annum (full or provisional members) of the MPL GROUP. Members with more than one office within a country pay EUR 500 for all branches together. The PPP charges are billed with the membership fees, at the same time.
The Marco Polo Line AG will receive 4% of annual fees, for delivery and management. Bank charges and interest credited to the bank will be posted to the bank account of the Fund. Any claim by a participating member in the PPP can be made solely against the assets of the PPP fund.
After disbursing the prior year’s claims, the PPP fund must not exceed ten times the total annual subscriptions. If this limit is reached, then subscriptions must be altered accordingly.
- Claims against the PPP fund
Default for freight services between the participants of the PPP shall be the sole criteria for claims against the PPP fund. Claims for benefits from the PPP funds are subject to the following conditions:
5.1 A claim must be submitted and must be substantiated with invoices, purchase orders, and any other documents and must be submitted in writing, stating the reasons and evidence for the default. The unpaid claims may be filed no earlier than 90 days but no later than 180 days after their due date.
5.2 Where continued credit was provided with no interim payments, only the oldest outstanding invoices will be considered against the PPP fund as this reflects poor management/judgment.
5.3 Unpaid invoices from members issued to probationary members, or between probationary members themselves do not constitute a claim against the PPP fund. Claims may be made by probationary members against full members of the MPL GROUP.
5.4 PPP will consider claims if they are accepted by the debtor in bankruptcy or otherwise demonstrably insolvent.
If the debtor does not settle outstanding sums in full, which are accepted under the terms of arbitration of this agreement, such sums will be accepted as claims for benefits.
5.5 The Maximum pay out for any single claim under this scheme shall not exceed EUR 10,000.00 irrespective if the amount of the claim is higher.
- Assessing and deciding on entitlements from the PPP funds.
6.1 All applications for payment from the PPP fund will be reviewed by the management of Marco Polo Line AG to determine whether they comply with the PPP Regulations and in particular the provisions of Article 5.
6.2 Details of any approved claim will be submitted to the debtor for comment.
If the claim is contested, a one-off attempt at conciliation for a full or partial payment of the claim will be made.
6.3 With unanimous agreement of The Marco Polo Line AG management, any disputed charges as set out in paragraphs 6.1 and 6.2 remaining unpaid will be accepted as a valid claim against the PPP fund.
6.4 Any MPL member whose debt is settled in full or part by the PPP fund shall be expelled from the Group with immediate effect.
- Approved payment of benefit claims
7.1 All claims filed according to Article 5.1. and approved in accordance with Article 6 within any calendar year shall be reviewed and adjudicated by 31st March of the following year and paid within 30 days.
7.2 All claims settled via PPP automatically become the property of MarcoPoloLine AG, who will make every endeavour to recover the amounts, in addition to using the MPL in-house lawyer. Claimants must agree by completing and signing the PPP Consent Form.
7.3 Where the total approved claims of the previous calendar year exceed 80% of the assets of PPP funds before payment, all payments will be reduced pro rata in accordance with clause 7.1 on the available total. The payments may not exceed 80% of the PPP funds in any year. No claim may be re-submitted for consideration in a following calendar year.
- Final Provisions
8.1 The decision of Marco Polo Line AG management will be final. A written report detailing the reasons for any decision by the Marco Polo Line AG board will be made available to debtor and claimant upon request.
8.2 These PPP Rules may only be amended by 2/3 approval of all shareholders of the Marco Polo Line AG.
8.3 The PPP may be cancelled with a 3/4 majority of the voting stock Marco Polo Line AG. The dissolution of the PPP funds may only take effect after completion of payments for the current calendar year. Any remaining funds after the dissolution of the PPP shall be disposed of as agreed by the Executive Board of the Marco Polo Line AG.
8.4 These Regulations are effective from 1 January 2017.
8.5 Benefit entitlements shall be considered by the 31st March of the following year.
8.6 MPL subscriptions fees and the PPP contribution are due together in any calendar year.