Common Do’s for Policyholders (Exporters)

• Validity of the Policy:

  Ensure that the Insurance Policy is valid/in-force to cover all your shipments. In case of renewal, ensure to submit the Proposal form well-in-advance for continuity of cover

• Maximum Liability (For declaration based Policy) / Aggregate (For exposure based policy):

  Ensure that the Maximum Liability (ML)/Aggregate Loss Limit (ALL) under the policy are sufficient to cover the amounts due from all the overseas buyers/banks at any given point of time. Seek enhancement, if necessitated

• Advance Premium:

  Please ensure that sufficient Premium deposit is maintained with ECGC in advance, based on the turnover projection, at all times, under the Policy, to cover the premium that will become payable for shipments to be effected. In case where installment facility for remittance of premium is opted for, please ensure to emit the due premium on or before the due date(s) of the respective installment(s)

• E – Connectivity:

  Obtain Customer ID and Password for on-line access to ECGC’s database on buyers which is available to exporters who have a whole-turnover policy cover

• Credit Limit (CL) / Loss Limit (LL) / Single Loss Limit (SLL):

  Ensure that all the shipments are adequately covered by a valid CL/LL/SLL on each buyer on appropriate terms of payment before effecting the shipment

• List of customers on whom ECGC has had adverse experience:

  Ensure before making shipment that the importers’/ buyers’ names are not appearing in the list of buyers on whom ECGC has had adverse experience, which is available on ECGC’s website to the policy holders holding whole-turnover covers

• Shipments to countries placed in Restricted Cover Category (RCC):

  Please ensure to take specific approval of the Corporation in case the payments are to be received and/or the destination of the goods, are from/to RCC countries

• Shipment Declaration:

  Submit the shipment declarations, wherever applicable on or before 15th of every month of all the shipments effected during the previous month in the prescribed format. In case no shipment has been made during the month, submit a “NIL” declaration. In case of Multi-Buyer Exposure Policy (MBEP), submit a quarterly statement of shipments made before the end of the beginning of the subsequent quarter

• Overdue Declaration:

  Notify/declare all bill(s) that have remained unpaid beyond 30 days (60 days for SEP & MEP) from their respective due dates of payment, by not later than 15th of the subsequent month, in the prescribed format and continue to do so till the payment is received or a claim is filed with the Corporation

• Loss Minimization:

  In case of non-payment, ensure to initiate the following steps to prevent/minimize loss:-

  • Safeguard the goods by shifting them to a bonded ware house (in case the goods have not been taken delivery by the buyer)
  • Stop making further shipments till the payments are realized
  • Persuade the buyer to make payment
  • Seek due approval of the Corporation in case of extension in due date, conversion in terms of payment, resale to an alternate buyer, reshipment of goods, abandonment of goods
  • Get the bills noted and protested
  • Take assistance of Indian High Commission / Consulate in the buyer’s country for realization of unpaid bill(s)

• Lodgment of Claim:

  File the claim at any time after submission of the overdue declarations as mentioned at Para 9 above, but within 360 days from the due date of payment for the shipment under claim or 540 days (600 days for Consignment Policies) from the expiry of the policy cover whichever is earlier.

• Recovery Action:

  In case of non-payment, ensure to initiate the following steps to prevent/minimize loss:-

  • Without any loss of time initiate prompt and necessary recovery action
  • Maintain legal recourse against the buyer in the event of a non-payment
  • Get the list of Debt Collecting Agents (DCA) from the Corporation and hand over the case to them for recovery
  • Initiate legal actions for recovery of the overdue payments in consultation with the Corporation. Any expenses incurred in recovery in consultation with the Corporation shall be a first charge on the amount recovered, if any
  • If non- payment is due to insolvency of the buyer, please file the claim with the Official Receiver and get the debt duly acknowledged by them.
  • In the event of realization, share the recovery with the Corporation in the same proportion in which the claim was settled by the Corporation