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Individual Packing Credit Cover for each of its exporter clients who has been classified as a standard asset and whose CR is acceptable to ECGC.
Export Credit Insurance For Banks Packing Credit (ECIB-INPC)
Eligibility:
A bank or a financial institution authorized to deal in foreign exchange can obtain the Individual Packing Credit Cover for each of its exporter clients who has been classified as a standard asset and whose CR is acceptable to ECGC.
Period Of Cover:
12 months
Eligible Advances:
All packing credit advances as per RBI guidelines.
Protection Offered
Against losses that may be incurred in extending packing credit advances due to protracted default or insolvency of the exporter-client.
Percentage Of Cover:
66-2/3%
Premium:
12 paise per Rs.100 p.m. on the highest amount outstanding on any day during the month.
Maximum Liability:
66-2/3% of the Packing Credit Limit sanctioned and approved by ECGC.
Important Obligation Of The Bank:
Monthly declaration of advances granted and payment of premium before 10th of succeeding month. Approval of the Corporation for extension of due date beyond 360 days from due date to be obtained. Default to be reported within 4 months from due date or extended due date of advances, if not recovered, filing of claim within 6 months of the Report of Default. Recovery action after payment of claim and sharing of recovery.
Highlights:
Bank can take the cover selectively.
