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This is a Whole turnover declaration based Policy wherein all shipments are required to be covered under the Policy.
Turnover Policy is for the benefit of large exporters who contribute not less than Rs.20 lakhs per annum towards premium based on projection of the export turnover of the policy holder for a year. This is a Whole turnover declaration based Policy wherein all shipments are required to be covered under the Policy.
Period of Policy:
12 Months
Exclusions Permitted:
Exports to Associates
Shipments backed by Letters of Credit
Risks Covered:
Commercial Risk / Buyer Risk
Political Risk
L/C Opening Bank Risk
Percentage of Cover:
90%
Important Obligations of the Exporter:
Obtaining valid credit limit on buyers and banks from ECGC.
Premium is payable in four equal quarterly installments in advance before commencement of risks and sufficient premium deposit is also to be maintained in advance based on the turnover projection at all times during the policy.
Submission of Monthly declaration of shipments by 15th of the subsequent month.
Notifying/Declaration of payments for bills that have remained unpaid beyond 30 days from its due date of payment, by the 15th of the subsequent month
Filing of claim within 360 days from the due date of the export bill or 540 days from expiry date of the Policy Cover whichever is earlier.
Initiating recovery steps including legal action.
Sharing of recovery.
Highlights:
Higher percentage of cover.
Competitive premium rate.
No Claim Bonus (NCB) of 5% subject to no claim, upto a maximum of 50%.
A turnover discount in the standard premium rate is offered subject to the total discount including NCB being not less than 20% to those exporters whose net annual premium payable exceeds Rs. 20 lacs.
Additional discount in standard premium rate is offered if the actual premium exceeds beyond 10% of the projected premium.
Discrepancy cover for L/C transactions subject to certain conditions.
Automatic cover for resale/reshipment up to 25% of Gross Invoice Value (GIV).
Availability of Discretionary Limits on buyers on conditions.
Cover for Merchanting trade with prior approval by making necessary endorsement.
