Credit Insurance Policies

Service Policy

Where Indian companies conclude contracts with foreign principals for providing them with
technical or professional services, payments due under the contracts are open to risks similar
to those under supply contracts. In order to give a measure of protection to such exporters of
services, ECGC has introduced the Services Policy.

What are the different types of Services Policy and what protection do they
offer?

Specific Services Contract (Comprehensive Risks) Policy;

Specific Services Contract (Political Risks) Policy;
Whole-turnover Services (Comprehensive Risks) Policy; and
Whole-turnover Services (Political Risks) Policy

Specific Services Policy, as its name indicates, is issued to cover a single specified contract. It is issued to provide cover for
contracts, which are large in value and extend over a relatively long period. Whole-turnover services policies are
appropriate for exporters who provide services to a set of principals on a repetitive basis and where the period of each
contract is relatively short. Such policies are issued to cover all services contracts that may be concluded by the exporter
over a period of 24 months ahead.
The Corporation would expect that the terms of payment for the services are in line with customary practices in
international trade in these lines. Contracts should normally provide for an adequate advance payment and the balance
should be payable periodically based on the progress of work. The payments should be backed by satisfactory security in
the form of Letters of Credit or bank guarantees.
Services policies are designed to cover contracts under which only services are to be rendered. Contracts under which the
value of services to be rendered forms only a small part of a contract involving supply of machinery or equipment will be
covered under an appropriate specific policy for supply contracts.