Shipments Comprehensive Risks Policy - (SCR)

Credit Insurance Policies

SCR or Standard Policy

Shipments (Comprehensive Risks) Policy, commonly known as the Standard Policy, is the one ideally suited to cover risks in respect of goods exported on short-term credit, i.e. credit not exceeding 180 days. This policy covers both commercial and political risks from the date of shipment. It is issued to exporters whose anticipated export turnover for the next 12 months is more than Rs.50 lacs. (The appropriate policy for exporters with an anticipated turnover of Rs.50 lacs or less is the Small Exporter's Policy, described separately).  

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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