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Software Project Policy provides protection to exporters of software and related services where the payments will be received in foreign exchange.
Software Project Policy provides protection to exporters of software and related services where the payments will be received in foreign exchange. Under SPP, supply of software products and packages, or staffing and programming services or both off-shore and on-site development is covered. It is meant for each contract for a particular job.
Period of Policy :
Depending on the contract.
Risks Covered:
Commercial Risk / Buyer Risk
Political Risk
L/C Opening Bank Risk
Percentage of Cover: 80%
Distinct Characteristics OF ITES Contracts:
Billing for the service rendered mostly on milestones progress report.
Exact due dates not possible.
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.
No salvage in almost all the cases.
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.
Exporter would be required to submit a progress report indicating the level of completion, payment sought and payment received and deviations in these areas.
The exporter has to specify in advance the manner in which the work in progress would be estimated.
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 up to 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.
