Shipments Comprehensive Risks Policy – (SCR)

SCR or Standard Policy

An exporter whose annual export turnover is more than Rs.500 lakhs is eligible for this Policy. This is a Standard Wholeturnover Policy wherein all shipments are required to be covered under the policy.

Period of Policy: 12 Months

Exclusions Permitted:

  • Exports to Associates
  • Shipments backed by Letters of Credit

Risks Covered:

  • Commercial Risk / Buyer Risk
  • Political Risk
  • L/C Opening Bank Risk

Percentage of Cover: 90%

Minimum Premium: Rs. 10,000/- shall be adjusted towards premiums falling due on the shipments effected under the policy and is non-refundable.

Important Obligations of the Exporter:

  • Obtaining valid credit limit on buyers and banks from ECGC.
  • Premium is payable in advance before commencement of risks and sufficient premium deposit is also to be maintained in advance based on the turnover projection at all times during the policy.
  • Submission of Monthly declaration of shipments by 15th of the subsequent month.
  • 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.


  • Higher percentage of cover.
  • Competitive premium rate.
  • No Claim Bonus (NCB) of 5% subject to no claim, upto a maximum of 50%.
  • Discrepancy covers for L/C transactions subject to certain conditions.
  • Automatic cover for resale/reshipment up to 25% of Gross Invoice Value (GIV).
  • Availability of Discretionary Limits on buyers on conditions.
  • Cover for Merchanting trade with prior approval by an endorsement.

The risks covered under the Standard Policy:

Under the Standard Policy, ECGC covers, from the date of shipment, the following risks:

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 four 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 four months from the due date.
  • Insolvency of the L/c Opening bank.

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 the 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.

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