MEP - Micro Exporters Policy

Micro Exporters Policy (MEP) is a saving scheme which aims at encouraging small exporters to incorporate certain improvements in terms of cover and obtain and operate freely without the different type of risks like Political and Commercial. This scheme is for those whose anticipated export turnover for the period of one year does not exceed Rs.1 crore

Benefits and highlights of MEP

Some of the benefits and highlights of MEP are:

  • Small exporters will get a 12-month insurance policy
  • The minimum premium payable will depend on the basis of projected exports. The minimum premium payable will be Rs.5,000
  • No claim bonus in the premium rate is granted every year at the rate of 5%
  • Shipments that is covered under the Small Exporter's Policy, EGCC will pay claims to the extent of 95% provided the loss incurred due to commercial risks, and 100% if the loss is due to any political risks

Risks covered on the overseas buyer

  • Insolvency of the buyer
  • If the buyer fails to make the payment within the specific period which is 2 months from the due date
  • Failure by the buyer to accept the goods, subject to certain conditions
  • Insolvency of the L/c Bank
  • If the L/c Bank fails to make the payment within the specific period which is 2 months from the due date

Political risks

  • Any government-imposed restrictions by the government of the buyer’s country which may delay or block the transfer of payment
  • In case of any civil war, war, revolution, or any civil disturbances in the buyer’s country
  • Diversion or interruption of voyage outside the India which results in the payment of additional insurance or freight charges
  • Any loss incurred outside India and is not covered by general insurance company

MEP Eligibility

  • All exporters including Traders, Manufacturers and Service providers
  • Export turnover to be up to Rs.1 crore

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