15A.2
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Marine Insurance on Exports
GIC has been permitted to accept premiums in rupees from exporters against export of goods from India on production of certificate from them to the effect that -
(a) the insurance charges on the shipment in question have to be borne by exporter in terms of the contract with overseas buyer and that he is not making the payment on behalf of any non-resident;
or
(b) the exporter is defraying the insurance charges on the shipment in question on account of overseas buyer of the goods and that he undertakes to add the amount on the invoice and recover the payment so made from the buyer in an approved manner. While handling shipping documents against exports contracted on f.o.b., c.& f. or any other terms under which liability on account of marine insurance on the shipment rests with overseas buyers but exporters have taken the insurance cover on non-resident partys account, authorised dealers should verify that the actual premium has been added on the invoice for being recovered from buyers.
NOTE: Certain countries operate restrictions requiring importers in their countries to obtain marine insurance cover from local insurers, settlement under which in favour of exporters in India may not be permissible in the event of cargo getting lost before reaching the port of destination due to Exchange Control regulations governing remittances against imports into those countries. Exporters may in such cases avail of contingency marine insurance policies from GIC and its subsidiaries in order to protect their interests till the goods are paid for. Claims on such policies will be payable only to exporter in India and such policies will not be assignable to overseas buyer or any other party. In such cases, the insurance premium paid to GIC will not be recoverable from overseas buyers.