Main respect in which the small exporters’ policy differs from the standard policy are given below:
The Small Exporters’ Policy is basically the Standard Policy, incorporating certain improvements in terms of cover, in order to encourage small exporters to obtain and operate the policy. It is issued to exporters whose anticipated export turnover for the next 12 months does not exceed Rs 25 lakhs.
Respect
1. Period of Policy:
Small Exporter’s Policy is issued for a period of 12 months, as against 24 months in the case of Standard Policy.
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2. Minimum Premium:
The Minimum premium payable for a Small Exporters’ Policy is an amount equal to 0.30% of the anticipated turnover on D/P and D/A terms of payment plus where the exporter seeks cover also for L/C shipments, 0.10% of the anticipated turnover on L/C terms or Rs 1000, whichever is higher.
3. Declaration of Shipments:
Shipments need to be declared only twice: in the seventh month for shipments made in the first six months of the policy period, and in the 13th month for shipments made in the last six months of the Policy period.
4. Declaration of Overdue Payments:
Small Exporters are required to submit monthly declarations of all payments remaining overdue by more than 60 days from the due date, as against 30 days in the case of exporters holding the Standard Policy.
5. Percentage of Cover:
For shipments covered under the Small Exporters’ Policy, the Corporation will pay claims to the extent of 95% where the loss is due to commercial risks, and 100% if the loss is caused by any of the political risks. Under the Standard Policy, the extent of cover is 90% for both commercial and political risks.
6. Waiting Period for Claims:
The normal waiting period of 4 months under the Standard Policy has been halved in the case of claims arising under the Small Exporters Policy.