New India to issue spl cover to export-focused SMEs, startups

Largest non-life insurer New India Assurance is likely to issue 500 policies on ATA Carnet, which is an internationally accepted customs certificate, to export-focused start-ups and SMEs this year, an official said today.
The objective of the policy is to facilitate insurance cover for start-ups and SMEs in lieu of cash deposits or bank guarantees against the ATA Carnet certificate.
"We have plans to issue 500 insurance policies on ATA Carnet to start-ups and SMEs, over the next one year and the same will be available for sale from August 1," a New India official said here on the sidelines of an industry event organised by Ficci.

ATA Carnet is an internationally accepted customs document used by exporters to travel abroad with commercial samples for participating in an exhibition/trade fairs or for a business promotion tour. This certification is accepted in 77 countries including India and can be used by exhibitors, businessmen for exhibitions/business promotions abroad.
This certification simplifies the customs procedures and clearances without paying duty or a bank guarantee for temporary import into a member- country.
"The proposed ATA Carnet policies will be reinsurance driven as 94 per cent of risk is covered under it by a reinsurer," the New India official said, adding "the premium to be charged for such policies is 3.5 per cent of the value of the goods being covered.