A: ECIE Short Term - Turnover Based
- Shipments Comprehensive Risks Policy - (SCR)
This is a Standard Whole Turnover Policy which covers all shipments.
Criteria | Description |
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Period of Policy | 12 Months |
Exclusions Permitted | - Exports to Associates - Shipments backed by Letters of Credit |
Risks Covered | - Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk |
Percentage of Cover | 90% |
Minimum Premium | Rs. 10,000/- |
Highlights | - No Claim Bonus (NCB) of 5% subject to no claim, upto a maximum of 50%. - Discrepancy covers for L/C transactions subject to certain conditions. - Automatic cover for resale/reshipment up to 25% of Gross Invoice Value (GIV). - Availability of Discretionary Limits on buyers on conditions. - Cover for Merchanting trade with prior approval by an endorsement. |
Commercial Risks (Covered) | For overseas buyers and on the L/c opening Bank: - Insolvency of the buyer/L/c Opening bank. - Failure of the buyer/L/c Opening bank to make the payment due within a specified period, normally four months from the due date. - Buyer’s failure to accept the goods, subject to certain conditions. |
Political Risks (Covered) | - Imposition of restrictions by the Government of the buyer’s country or any Government action. - War, civil war, revolution or civil disturbances in the buyer’s country. - New import restrictions or cancellation of a valid import license in the buyer’s country. - Interruption or diversion of voyage outside India resulting in payment of additional freight or insurance charges. - Any other cause of loss occurring outside India not normally insured by general insurer and beyond the control of both the exporter and the buyer. |
- Small Exporters Policy - (SEP)
This is a standard policy for small exporters whose anticipated export turnover for the period of one year does not exceed Rs. 5 crores. The Maximum Liability under the SEP shall be fixed as per laid down guidelines, but shall not exceed Rs. 2 crores.
Criteria | Description |
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Period of Policy | 12 Months |
Minimum Premium | - Rs. 5000/-. - No claim bonus in the premium rate is granted every year at the rate of 5%. |
Waiting Period (Claims) | 2 months |
Declaration of Shipments | Monthly |
Declaration of Overdue payments | Exporters are required to submit monthly declarations of all payments remaining overdue by more than 60 days from the due date. |
- Specific Shipment Policy - (SSP)
This policy is for exporters who do not hold any of the Standard Policy/Whole Turnover Policy.
Criteria | Description |
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Period of Policy | Date of issue of the policy and upto the last date for shipment under the relevant contract. |
Risks Covered | - Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk |
Percentage of Cover | 80% |
This is a policy designed to cover payments due under the contracts where only services like technical or professional are to be rendered. There are four types of Services Policies:
- Specific Services Contract (Comprehensive Risks) Policy - It is issued to provide cover for large contracts which have a relatively long period.
- Specific Services Contract (Political Risks) Policy
- Whole-turnover Services (Comprehensive Risks) Policy; and
- Whole-turnover Services (Political Risks) Policy - It is issued to exporters who provide services to a set of principles on a repetitive basis and where the period of each contract is relatively short.
- Export Turnover Policy - (ETP)
This is a Whole Turnover declaration based Policy wherein all shipments are required to be covered under the Policy. Turnover Policy is for the benefit of large exporters who contribute not less than Rs.20 lakhs per annum towards premium based on projection of the export turnover of the policy holder for a year.
Criteria | Description |
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Period of Policy | 12 months |
Exclusions Permitted | - Exports to Associates - Shipments backed by Letters of Credit |
Risks Covered | - Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk |
Percentage of Cover | 90% |
Highlights | - No Claim Bonus (NCB) of 5% subject to no claim, upto a maximum of 50%. - A turnover discount in the standard premium rate is offered subject to the total discount including NCB being not less than 20% to those exporters whose net annual premium payable exceeds Rs. 20 lakhs. - Additional discount in standard premium rate is offered if the actual premium exceeds beyond 10% of the projected premium. - Discrepancy cover for L/C transactions subject to certain conditions. - Automatic cover for resale/reshipment up to 25% of Gross Invoice Value (GIV). - Availability of Discretionary Limits on buyers on conditions. - Cover for Merchanting trade with prior approval by making necessary endorsement. |
- Exports (Specific Buyers) Policy (BWP)
This policy provides cover for shipments made to a particular buyer or on LC opening bank for a set of buyers.
Criteria | Description |
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Period of Policy | 12 months |
Risks Covered | - Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk |
Percentage of Cover | 80% |
Highlights | - No Claim Bonus (NCB) of 5% subject to non-claim, upto a maximum of 50%. - Separate Policy per buyer. |
- Consignment Exports Policy (Stockholding Agent) - (CSA)
This is a policy designed to provide cover for shipments made by exporters on consignment basis to their agents.
Criteria | Description |
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Period of Policy | 12 months |
Risks Covered | - Commercial Risk on Stockholding Agent and/or ultimate buyers. - Political Risk |
Percentage of Cover | 90% for Standard Policyholder and 80% for others |
Highlights | - Covers exports affected under consignment sale. - Extended period for realization up to 360 days. - Automatic cover on ultimate buyers up to discretionary limits subject to buyers being in a country placed in Open Cover category and not in the list of buyers on whom the Corporation has adverse information referred to as Buyer Specific Approval List (BSAL). - No Claim Bonus (NCB) of 5% subject to no claim, upto a maximum of 50%. |
B: ECIE Short Term - Exposure Based
- Buyer Exposure Policy (BEP)
This policy is designed to insure exporters having a large number of shipments to a particular buyer.
Criteria | Description |
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Period of Policy | 12 months |
Risks Covered | - Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk |
Percentage of Cover | 90% for Standard Policyholders and 80% for others |
Highlights | - Protection is available upto the approved Loss Limit. - Premium is payable only on the Loss Limit approved on the buyer. - No Claim Bonus (NCB) of 5% subject to non-claim, upto a maximum of 50%. - Declaration procedure is waived off. - Separate Policy per buyer with an option to insure selective buyer. |
- IT-Enabled Services Policy-Single Customer (SITES)
This is a special policy given in respect of contracts for rendering service during a defined period with billing on the basis of service rendered during a period say, a week, a month or a quarter.
Criteria | Description |
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Period of Policy | 12 months |
Risks Covered | - Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk |
Percentage of Cover | 80% |
Highlights | - Protection is available upto the approved Loss Limit. - Premium is payable only on the Loss Limit approved on the buyer. - No Claim Bonus (NCB) of 5% subject to non-claim, upto a maximum of 50%. - Declaration procedure is waived off. - Separate Policy per buyer with an option to insure selective buyer. |
- Micro Exporter Policy - (MEP)
This is an exposure based policy designed specifically for the SME sector.
Criteria | Description |
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Risks Covered | Commercial Risks:
- Insolvency of the buyer - Failure of the buyer to make the payment due within a specified period - Buyer’s failure to accept the goods - Insolvency of the L/c Opening bank - Failure of the L/C opening bank to make the payment due within a specified period
Political Risks:
- Imposition of restrictions by the Government of the buyer’s country or any Government action. - War, civil war, revolution or civil disturbances in the buyer’s country. - New import restrictions or cancellation of a valid import license in the buyer’s country. - Interruption or diversion of voyage outside India resulting in payment of additional freight or insurance charges. - Cause of loss occurring outside India not normally insured by general insurer. |
Features | - Policy period: 12 months - Processing Fees: Rs.1000 - Minimum Premium: Rs. 25000 - Maximum Loss Limit: Rs.15 lacs - Single Loss Limit: Rs. 5 lacs - Report of overdue: more than 60 days from the due date - Waiting period: 2 months from the due date or extended Due date - Percentage of cover: 90% |
This policy provides protection to exporters of software and related services where the payments will be received in foreign exchange.
Criteria | Description |
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Period of Policy | Depending on the contract |
Risks Covered | - Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk |
Percentage of Cover | 80% |
Highlights | Protection is available upto the approved Loss Limit. - Premium is payable only on the Loss Limit approved on the buyer. - Separate Policy per buyer with an option to insure selective buyer. |
C: ECIE - Medium & Long Term
- Construction Works Policy - (CWP)
This policy provides cover to an Indian contractor who executes a civil construction job abroad.
Criteria | Description |
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Loss Coverage | 85% |
Risk Covered | - Insolvency of the employer (when he is a non-Government entity). - Failure of the employer to pay the amounts that become payable to the contractor in terms of the contract, including any amount payable under an arbitration award. - Restrictions on transfer of payments from the employer’s country to India after the employer has made the payments in local currency. - Failure of the contractor to receive any sum due and payable under the contract by reason of war, civil war, rebellion, etc. - Failure of the contractor to receive any sum that is payable to him on termination or frustration of the contract. - Imposition of restrictions on import of goods or materials (not being the contractor’s plant or equipment) or cancellation of authority to import such goods or cancellation of export license in India. - Interruption or diversion of voyage outside India, resulting in his incurring in respect of goods or materials exported from India. |
Highlights | - Cover can be for political or comprehensive risks/full insurable value including retention portion/third country exports. - Premium can be paid in installments. - Reduced loss coverage with proportionate reduction in premium. - Reduced premium for projects funded by multilateral agencies. |
- Specific Policy for Supply Contract (SITES)
This is a whole turnover policy designed to provide continuing insurance for the regular flow of an exporter’s shipments for which credit period does not exceed 180 days.
Criteria | Description |
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Loss Coverage | 90% |
Risk Covered | - Insolvency of buyer - Protracted default of buyer - Buyer’s failure to accept goods - War, Civil War, Revolutions in buyer’s country - New Import restrictions - Transfer delays - Insolvency - Default |
Highlights | - Add on pre-shipment risk cover. - Provides cover for full insurable value including retention portion and third country exports. - Reduced premium for projects funded by multilateral agencies. |
- Specific Shipment Policy - (SSP)
This is a specific policy which provides protection against non-receipt of payments due to commercial and /or political risks.
Criteria | Description |
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Loss Coverage | 90% |
Risk Covered | - Insolvency of buyer - Protracted default of buyer - Buyer’s failure to accept goods - War, Civil War, Revolutions in buyer’s country - New Import restrictions - Transfer delays - Insolvency - Default |
Highlights | - Add on pre-shipment risk cover. - Provides cover for full insurable value including retention portion and third country exports. - Reduced premium for projects funded by multilateral agencies. |
- Specific Services Policy - (SRC): Same as Services Policy
Letter of Credit Confirmation Cover
Also known as a transfer cover, it is issued at the option of the bank to cover either political risks alone, or both political and commercial risks.
- Loss due to Political Risk - 90%
- Loss due to Commercial Risk - 75%
- Rate of Premium - Depends on the country of export and the tenor of L/C