Standard Policy or SCR
Shipments Comprehensive Risks Policy or SCR in short is primarily for risk coverage in terms of exported good on basis of short term credit which is 180 days or less. The policy covers commercial and political risks from the shipment date. Exporters whose annual turnover is more than Rs. 50 lacs are eligible for this policy.
For Standard Policy, ECGC covers from shipment date the risks as follows:
a. Commercial Risks:
- Buyers’ insolvency
- Buyers’ failure to make payment within 4 months from shipment date
- Failure on buyers’ side in acceptance of goods, subject to certain terms & conditions
b. Political Risks:
- In cases where delay or blockage in transfers of funds for payment from buyers’ country due to restrictions from the Government
- When buyers’ country faces war disturbances of any kind.
- Imposition of new import laws or restrictions or buyer’s import license is cancelled
- Unrecoverable additional payments in form of insurance or freight charges due to diversion or interruption of shipping vessel outside India
- Any other miscellaneous reasons not protected by other regular general insurers resulting in losses outside India and which are outside the control or preview of either or the buyer and exporter
The above SCR policy is for medium to high end exporters; however in case of exporters whose annual turnover is less than Rs. 50lacs, they may avail the Small Exporter’s Policy. For details please contact our office.