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Bank can take the cover selectively.
Export Credit Insurance For Banks Individual Post Shipment (ECIB - INPS) for Non Policy Holders
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 each of its exporter-clients who is not holding the Standard Policy of ECGC.
Period Of Cover:
12 months
Eligible Advances
(a) All post-shipment advances against L/C bills
(b) All other post-shipment advances except bills drawn on associates.
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%
Premium:
9 paise per Rs. 100 p.m. in respect of (a) and 13 paise per Rs.100 in respect of (b) under Eligible Advances above payable on the highest amount outstanding on any day during the month.
Maximum Liability:
60% of the Post-shipment Limits of the account.
Important Obligations 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 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.
