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Specific Shipments Policy can be obtained by exporters that have secured contract for supply of capital goods such as machinery or equipment's on deferred terms of payment.
Specific Shipment Policy
Specific Shipments Policy can be obtained by exporters that have secured contract for supply of capital goods such as machinery or equipment's on deferred terms of payment. The cover provides protection against non-receipt of payments due to commercial and /or political risks.
Risk Covered
Insolvency of buyer
Protracted default of buyer
Buyer's failure to accept goods
Commercial
War, Civil War, Revolutions in buyer's country
New Import restrictions
Transfer delays
Political
War, Civil War, Revolutions in buyer's country
New Import restrictions
Transfer delays
LC Opening Bank Risks
Insolvency
Default
Loss Coverage:
80%
Important Obligations:
Obtain indicative premium rate at bid stage
Seek post awarded approval from AD/WG on award of contract
Obtain in-principle approval
Seek cover after payment of premium
Advise progress of project in accordance with PEM guidelines
Declaration of overdue payments
Filing of claim within 12 months from due date
Sharing of recovery
Highlights:
Cover can be either for political or comprehensive risks
Add on pre-shipment risk cover can also be obtained
Cover for full insurable value including retention portion
Cover for third country exports as well
Premium can be paid in installments
Reduced premium for projects funded by Multi-lateral agencies.
