Cheaper insurance premium for small exporters
Union Minister Piyush Goyal said that the commerce ministry will soon approach the government to trim down insurance premium rates from 0.7% currently to 0.6% for small exporters having an outstanding limit of less than Rs 80 crore. For exporters above the threshold of Rs 80 crore, premium rates will be streamlined. These exporters will be segregated into categories such as non-gold, jewellery and diamond, among others.
The minister also said that the recent NIRVIK (Niryat Rin Vikas Yojna) Scheme was launched to provide more comfort to banks to lend to exporters. He also spoke about Export Credit Insurance Scheme (ECIS) that envisages simplified procedure for settlement of claim. It also includes provisional payment up to 50% within 30 days on production of proof of end-use of the advances in default by the insured bank.