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Micro Exporters Policy (MEP)

ECGC Ltd. (Ministry of Commerce & Industry)

The Small Exporter's Policy is basically the Standard Policy, incorporating certain improvements in terms of cover, in order to encourage small exporters to obtain and operate freely without the different type of risks like Political and Commercial. It is issued to exporters whose anticipated export turnover for the period of one year does not exceed INR 1 crores. 

Scheme Benefits & Highlights

1. A 12-month insurance policy for small exporters.

2. Premium payable will be determined on the basis of projected exports on an annual basis subject to a minimum premium of INR 5000 for the policy period. No claim bonus in the premium rate is granted every year at the rate of 5%.

3. For shipments covered under the Small Exporter's Policy ECGC will pay claims to the extent of 95% where the loss is due to commercial risks and 100% if the loss is caused by any of the political risks. 

Type of risks covered

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.

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.

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