IT-enabled Services (Single Customer) Policy would be given in respect of contracts for rendering service during a defined period with billing on the basis of service rendered during a period say, a week, a month or a quarter. One policy for one buyer shall be issued.

Period of Policy: 12 Months

Risks Covered:

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

Percentage of Cover: 80%

Distinct Characteristics OF ITES Contracts:

• Contract is for providing certain service during a defined period.
• Billing for the service rendered at a pre-determined interval.
• Where there is a non-payment problem, there can be certain services invoiced and accepted, certain services invoiced but not accepted and certain services rendered but yet to be invoiced.
• No requirement of physical documentation as the process is carried out through electronic media.
• Provision for correction in case of errors and omissions.
• Filing of claim within 360 days from the due date of the export bill or 600 days from expiry date of the Policy Cover whichever is earlier.
• The policy will be offered for contracts, which contain standard terms and conditions as per the norms and practices of the IT-enabled Services export industry.
• Right to verify documents by the Corporation or by an authorized agency.

Important Obligations of the Exporter:

• Processing fee of Rs.2000/- (non-refundable) is payable.
• Upfront premium payment in full on the Loss Limit.
• Monthly declaration indicating the services rendered, invoices raised and invoices paid to be submitted by the exporter by 15th of the subsequent month.
• No separate overdue report.
• 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.

Highlights:

• 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.
• Separate Policy per buyer.
• No Claim Bonus (NCB) of 5% subject to no claim, upto a maximum of 50%.

To download the proposal form for ITES (Single Buyer) Policy, Click here.

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