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Bank can take the cover selectively.
Export Credit Insurance For Banks Individual Post - Shipment (ECIB - INPS)
Eligibility:
Any bank or financial institution who is an authorized dealer in foreign exchange can obtain the Individual Post-shipment Export Credit Cover in respect of its exporter client who is holding the appropriate Comprehensive Risks Policy of ECGC but with specific exclusions.
Period Of Cover:
12 months
Eligible Advances:
All post-shipment advances given through purchase, negotiation or discount of export bills or advances against bills sent on collection.
Protection Offered
Against losses that may be incurred in extending post-shipment advances due to protracted default or insolvency of the exporter-client.
Percentage Of Cover:
75% for advances against bills drawn on buyers other than associates. 60% for advances against bills drawn on associates provided relevant shipments are covered for comprehensive risks.
Premium:
9 paise per Rs.100 p.m. payable on the highest amount outstanding on any day during the month.
Maximum Liability:
75% of the Post-shipment Limit sanctioned to the account.
Important Obligation Of The Bank:
Monthly declaration of advances granted and payment of premium before 10th of the succeeding month. Approval of the Corporation for extension of due date beyond 180 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.
