Small Exporters’ Policy: For the benefit of small-scale exporters ECGC has introduced a special ‘Small Exporters’ Policy’ under which relaxation has been made in respect of certain important terms and conditions. For the purpose of issuing policy, a Small Exporter is defined as an exporter whose anticipated total export turnover for the period of 12 months ahead is not more than Rs. 25 lakhs.
The period of the policy will be 12 months. ECGC will pay claim up to 95 per cent where the loss is due to commercial risks and 100 per cent if the loss is caused by any of the political risks. The waiting period under the policy is 2 months.
Shipments under Small Exporters’ Policy will have to be declared on a half yearly basis. In addition, monthly declarations of all payments which remain overdue by more than 60 days from the due date are to be submitted to ECGC.
An exporter who applied for Small Exporters’ Policy is required to pay. before the Corporation issues the policy a ‘Minimum Premium’ equal to 0.30 per cent of the anticipated exports on D/P and D/A basis and where the exporter also seeks cover for shipments made against irrevocable letter of credit an amount equal to 0.10% of the value of such shipments subject to a minimum of Rs. 1,000.
Premium will, however, have to be calculated on all shipments declared to the Corporation at the rates given in the premium schedule and additional premium schedule will have to be paid if the premium payable on the shipments exceeds the amount of the minimum premium. No part of the minimum premium will be refunded to the exporter if the premium payable on actual shipments falls below the amount of minimum premium.