Whole Turnover Post Shipment - (WTPS)

Export Credit Insurance For Banks Whole Turnover Post Shipment (ECIB -WTPS)

Eligibility:
A bank or a financial institution dealing with foreign exchange is eligible to obtain this Whole-turnover Cover for all its accounts.

Period Of Cover:
12 months

Eligible Advances
All post-shipment advances granted to exporters by way of purchase/discount/negotiation of export documents or advances granted against export bills sent on collection basis, as per RBI guidelines.

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:
Varies from 90% to 95% in respect of exporters who are Policyholders of ECGC and 50% to 75% for non-Policyholders, depending upon the claim premium ratio of the bank. For bills drawn on Associates of Policyholders coverage is 60% and of non-Policyholders it is 50%.

Premium:
4.5 paise TO 6.00 paise per Rs. 100 p.m. if advances against L/C bills are included for cover otherwise it is 5.5 paise to 7.00 paise depending upon the Claim Premium Ratio for the last 5 years.

Maximum Liability:
An overall limit will be fixed for the bank up to which claims can be paid by the Corporation in respect of advances granted during the ECIB-WTPS year.

Important Obligations Of The Bank:
Monthly declaration of advances granted and payment of premium before the end of the succeeding month. Approval of the Corporation for extension of due date beyond 180 days (360 days for status holders) 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 the subsequent sharing of recovery.

Highlights:
Option to exclude, Govt. Cos., advances to associates, units in OBU and L/Cs under the Cover. Submission of a single proposal for all accounts to be covered.