EXPORT PAYMENTS INSURANCE POLICY (EPIP)
Export Payments Insurance Policy (EPIP) is designed to protect Zimbabwe's exporters from losses that may arise from a variety of commercial and political risks inherent in all export transactions. This protection will also enhance their capacity to compete in the international markets and enable them to break into new markets, introduce new products and take up new buyers.
Insolvency of the buyer, his protracted default and non-acceptance of exported goods are the commercial risks covered under the Policy. Where shipments are made against Letters of Credit (L/C), the Policy provides cover against the risks of insolvency and protracted default of the L/C-issuing bank.
War, civil disturbances, moratorium, imposition of new import or exchange control regulations and transfer delays are among the political risks covered by the Policy.
Risks not covered
Losses arising from the following risks are not covered:
Insolvency or failure of any agent of the exporter.
Failure of the exporter or the buyer to obtain necessary authority to execute the export contract.
Exchange rate fluctuation.
General and marine insurance risks; and
Trade dispute between the exporter and the buyer.
Percentage of Cover
If a loss is sustained by the exporter due to any of the risks covered under the policy, the exporter can claim 90% of such loss from the Corporation. This percentage of cover may, however, be lowered by the Corporation in specific cases. The uncovered portion of the loss is borne by the exporter.
Waiting Period of Claims
Exporters are eligible to file claims after a waiting period which ranges from one to four months from the due date or the date of the event causing the loss.
Whole Turnover Principle
The policy is designed to cover all the shipments to all or selected markets that may be made by the exporter on Letters of Credit or short- term credit during a period of 12 months. Premium will be payable on actual value of shipments made during the policy period. Shipments made to associates and on consignment basis are excluded, but can be covered at the option of the exporter.
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