Please explain me about Export credit guarentee.... andcan the exporter claim Export credit guarentee premium paid, after completion of particular shipment ..........?
<>Sanjay Divakar
Shipments (Comprehensive Risks) Policy, commonly known as the Standard Policy, is the one ideally suited to cover risks in respect of goods exported on short-term credit, i.e. credit not exceeding 180 days. This policy covers both commercial and political risks from the date of shipment. It is issued to exporters whose anticipated export turnover for the next 12 months is more than Rs.50 lacs. (The appropriate policy for exporters with an anticipated turnover of Rs.50 lacs or less is the Small Exporter's Policy, described separately).
Under the Standard Policy, ECGC covers, from the date of shipment, the following risks:
a. Commercial Risks
Insolvency of the buyer.
Failure of the buyer 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.
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