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IT-enabled Services (Single Customer) Policy would be given in respect of contracts for rendering service during a defined period with billing on the basis of service rendered during a period.
IT-enabled Services (Single Customer) Policy would be given in respect of contracts for rendering service during a defined period with billing on the basis of service rendered during a period say, a week, a month or a quarter. One policy for one buyer shall be issued.
Period of Policy:
12 Months
Risks Covered:
Commercial Risk / Buyer Risk
Political Risk
L/C Opening Bank Risk
Percentage of Cover:
80%
Distinct Characteristics OF ITES Contracts:
Contract is for providing certain service during a defined period.
Billing for the service rendered at a pre-determined interval.
Where there is a non-payment problem, there can be certain services invoiced and accepted, certain services invoiced but not accepted and certain services rendered but yet to be invoiced.
No requirement of physical documentation as the process is carried out through electronic media.
Provision for correction in case of errors and omissions.
Filing of claim within 360 days from the due date of the export bill or 600 days from expiry date of the Policy Cover whichever is earlier.
The policy will be offered for contracts, which contain standard terms and conditions as per the norms and practices of the IT-enabled Services export industry.
Right to verify documents by the Corporation or by an authorized agency.
Important Obligations of the Exporter:
Processing fee of Rs.2000/- (non-refundable) is payable.
Upfront premium payment in full on the Loss Limit.
Monthly declaration indicating the services rendered, invoices raised and invoices paid to be submitted by the exporter by 15th of the subsequent month.
No separate overdue report.
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:
Protection is available upto the Loss Limit approved on the buyer under the Policy.
Premium is payable only on the Loss Limit approved on the buyer, irrespective of the shipments effected to the buyer.
Separate Policy per buyer.
No Claim Bonus (NCB) of 5% subject to no claim, upto a maximum of 50%.
