3/8/2014 ECGC

Buyer Exposure Policy - (BEP)

Credit Insurance Policies
Buyer Exposure Policies
Presently, in the policies offered to exporters premium is charged on the export
turnover, though the Corporations exposure on each buyer is controlled through a
system of approval of credit limits on the buyer for covering commercial risks.
While this suits the small and medium exporters, many large exporters having large
number of shipments have been complaining about the volume of returns to be filed
under the policy necessitating the deployment of their resources for this purpose
and also resulting in possible unintentional omissions or commissions in such
reporting, which have an impact on the settlement of claims. There has been a
demand for simplification of the procedures as well as for rationalization of the
premium structure. Considering the requirements of such exporters, the
Corporation has decided to introduce policies on which premium would be
charged on the basis of the expected level of exposure. Two types of exposure
policies one for covering the risks on a specified buyer and another for covering
the risks on all buyers- are offered.
Two types of Exposure policies are offered, viz,
Exposure (Single Buyer) Policy for covering the risks on a specified buyer and
Exposure (Multi Buyer) Policy for covering the risks on all buyers.

What does an Exposure (Single Buyer) Policy cover?:

An exporter can choose to obtain exposure based cover on a selected buyer. The cover would be against
commercial and political risks attached to the buyer for both non-LC and LC transactions. A separate
Buyer Exposure Policy will be issued for each buyer covering all the exports to be made to the buyer
during a period of twelve months. If the exporter has opted for commercial and political risks cover, failure
of the LC opening bank in respect of exports against LC will also be covered, for the banks with World
Rank (WR) up to 25,000 as per latest Bankers almanac. For covering the political risks only, in respect of
LC transactions or shipments to associates, Buyer Exposure policy with endorsement restricting the cover
to political risks only. This policy can be availed by exporters holding Standard Policy in respect of any of
their buyers. Shipments to the buyers covered under Buyer Exposure Policies would be excluded from the
purview of the Standard Policy.
What is a Multi Buyer exposure based policy ( MBEP) ?
In case of an exporter making exports to a large number of overseas buyer, finds it inconvenient either to
apply for buyer (single buyer) exposure policy for all buyers or declare their exports shipment wise , it can
avail cover through a MBE policy. Under the policy the exporter can take cover for all its credit term
exports made to all buyers for aggregate loss limit ( ALL), in respect of commercial risks and political
risks. Normally ALL sought under the policy should not be less than 10% of the total export turn over for
applicable categories/ countries. The policy does not cover the exports to buyers in the countries which are
in the restricted cover country (RCC) list maintained by the Corporation and buyers under the buyers
specific approval list(BSAL) of the Corporation. The cover for L/c opening banks are also available for
banks with World rank up to 25000 as per latest bankers almanac. Loss limit in respect of individual
buyer/bank will be restricted upto 10% of ALL.

Do's and Don'ts

Single Buyer Multi Buyer
To download the proposal form for SBEP, click here.
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To download the proposal form for MBEP, click here.

Click here for list of Frequently Asked Questions on Buyer Exposure Policies (Stockholding Agent and
Global Entity)

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