Micro Exporters Policy (MEP) – (Erstwhile SME)

Policy For SME Sector

ECGC introduced a Policy exclusively for the SME sector units in 4th July, 2008. It had undergone a modification and was rechristened as Micro Exporters Policy (MEP) in 2014 by making the product more attractive with improved cover. MEP is an exposure based Policy.

a. Commercial Risks


I. Risks covered on the overseas buyers:

  • Insolvency of the buyer.
  • Failure of the buyer to make the payment due within a specified period, normally 2 months from the due date.
  • Buyer’s failure to accept the goods, subject to certain conditions.

II .Risks covered on the L/c opening Bank

  • Insolvency of the L/c Opening bank
  • Failure of the L/C opening bank to make the payment due within a specified period normally 2 months from the due date.

b. Political Risks

  • Imposition of restriction by the Government of the buyer’s country or any Government action, which may block or delay the transfer of payment made by the buyer.
  • War, civil war, revolution or civil disturbances in the buyer’s country. New import restrictions or cancellation of a valid import license in buyer’s country.
  • Interruption or diversion of voyage outside India resulting in payment of additional freight or insurance charges which cannot be recovered from the buyer.
  • Any other cause of loss occurring outside India not normally insured by general insurers, and beyond the control of both the exporter and the buyer.

The features of the MEP Policy are as under


Features of Micro Exporters Policy (MEP) at a glance No. Particulars Details

  1. Policy period : 12 months
  2. Processing Fees : Rs.1000
  3. Minimum Premium : Rs 25000
  4. Maximum Loss Limit : Rs.15 lacs
  5. Single Loss Limit : Rs. 5 lacs
  6. Report of overdue : more than 60 days from the due date
  7. Waiting period : 2 months from the due date or extended Due date
  8. Percentage of cover : 90%

All exporters including Traders, Manufacturers and Service providers, irrespective of MSME Certificate, shall be eligible for the Policy subject to their export turnover up to Rs.100 Lakh.

To download the proposal form for a MEP Policy, Click here.

Click here for Do and Don’ts