Credit Insurance Policies
Specific Shipment Policy - Short Term(SSP-ST)
Specific Shipment Policies - Short Term (SSP-ST) provide cover to Indian exporters against commercial and political risks involved in export of goods on short-term credit not exceeding 180 days. Exporters can take cover under these policies for either a shipment or a few shipments to a buyer under a contract. These policies can be availed of by
- exporters who do not hold SCR Policy and
- By exporters having SCR Policy, in respect of shipments permitted to be excluded from the preview of the SCR Policy.
What are the different types of SSP (ST)?
Different types of SSP (ST)
- Specific Shipments (commercial and political risks) Policy - short-term.
- Specific Shipments (political risks) Policy - short-term.
- Specific Shipments (insolvency & default of L/C opening bank and political risks) Policy - short-term. and.
The risks covered under the SSP Policy:
Under the Specific shipment Policies, 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.
a. 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.