Leading global insurance company New India Assurance is about to launch a special insurance cover for export-focused SMEs and start-ups. The company is said to issue 500 policies on ATA Carnet, an international level acceptable custom certificate, in 2017, a company official said.
While addressing the gathering at a FICCI event, a New India Assurance official said that the purpose of bringing these policies is to provide an insurance cover to start-ups and SMEs in lieu of cash deposits and bank guarantees given against ATA Carnet Certificates.
The official informed that the company has planned to issue 500 insurance policies on ATA Carnet. These policies will be available for sale from August 1 and sold within the next 1 year.
ATA Carnet is an internationally accepted custom document. It is used by exporters to carry commercial samples abroad. These samples are then showcased in exhibitions, fairs or business promotion tours. The certificate is accepted in 77 countries including India. This certification eases the custom procedure and clearance without paying any bank guarantee or duty for temporary import of samples within any of these 77 countries.
“The proposed ATA Carnet policies will be reinsurance driven as 94 per cent of risk is covered under it by a reinsurer. The premium to be charged for such policies is 3.5 per cent of the value of the goods being covered,” the official said.
