Buyer Exposure Policy (SBEP)
The Buyer Exposure Policy is to insure exporters having a large number of shipments to a particular buyer with simplified procedure and rationalized premium. An exporter can choose to obtain exposure based cover on a selected buyer. The cover would be against commercial and political risks. The option to exclude L/C shipment is available. If L/C shipment has been opted for commercial and political risks cover, failure of L/C opening bank with World Rank upto 25000 as per latest Banker’s Almanac is available. If exporter opts for only political risks, premium at lesser rate is offered.
Period of Policy : 12 months
- Commercial Risk / Buyer Risk
- Political Risk
- L/C Opening Bank Risk
Percentage of Cover: 90% for Standard Policyholders and 80% for others.
Important Obligations of the Exporter:
- Processing fee of Rs.2000/- (non-refundable) is payable.
- Upfront premium payment in full on the Loss Limit.
- Obtaining prior approval for extending the due date of payment of the export bill where the total credit period of realization exceeds180 days.
- Notifying/Declaration of payments for bills that have remained unpaid beyond 30 days from its due date of payment, by the 15th of the subsequent month.
- 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
- Protection is available upto 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.
- No Claim Bonus (NCB) of 5% subject to non claim, upto a maximum of 50%.
- Declaration procedure waived.
- Separate Policy per buyer.
- Selective buyer can be insured.
Do’s and Don’ts
To download the proposal form for SBEP,click here.
To download the proposal form for MBEP,click here.