How to obtain the Policy (EPIP) and how it operates
Exporters desirous of obtaining a Policy should submit a proposal to the Corporation. Proposal forms can be obtained free of charge from the Corporation.
After examining the proposal, the Corporation will send an Offer Letter to the exporter, with a specimen of the Policy proposed to be issued and the premium rates.
If the terms and conditions of the proposed Policy and the premium rates quoted by the Corporation are acceptable to the exporter, an Acceptance Letter will be sent by the exporter to the Corporation, together with the prescribed Policy Fee.
Credit Limit on Buyer/Banks
As no cover will be available to the exporter in the absence of a Credit Limit, the exporter should apply for the limits at the earliest stage of business negotiation, in order that the Corporation will have sufficient time to obtain reports on the buyers and approve limits based on such reports.
Declaration of Shipments
The exporter should declare on a monthly basis shipments made during the policy period, except any class of shipments specifically excluded from the Policy. Failure to declare any shipment will be a breach of an important condition of the policy and will result in forfeiture of the exporter's right to claim losses even in respect of shipments properly declared by him.
Declaration of Overdues
The exporter should declare accounts which are overdue for payment until they have been settled or the Corporation has paid out claims in respect of them.
Payment of Premium
Premium becomes due to the Corporation as and when shipments are effected and is payable on declaration of shipments as stipulated above. Premium is the consideration for the insurance and therefore, it is important that it is paid on time.
As a rule, all shipments made during the policy period must be covered under the the policy, except the following:-
(i) Shipments for which payments are received in advance;
(ii) Shipments made against irrevocable Letters of Credit confirmed by a bank in Zimbabwe or by a bank in any third country;
(iii) Shipments made to the exporter's own associates abroad;
(iv) Shipments made on consignment basis to the exporter's own office or to his agents abroad to be held in stock overseas.
Optional Cover for Shipments to Associates
If, however, the exporter so desires, shipments to associates cab be covered against political risks.
Cover for Shipments in Transit
A special Policy is available to exporters who want protection only for the transit period. The Policy provides cover against a range of political risks which are not normally covered by commercial insurers.