GIC norms worry exporters

NEW DELHI, MARCH 14: An apex chamber has expressed concern at the burdensome regulations imposed on exporters by the General Insurance Corporation (GIC), particularly when they have to cough up a one per cent premium on full cargo value for failure to meet the short documentation deadlines.

In a note to the RBI, the Associated Chambers of Commerce and Industry of India (Assocham) has highlighted the export-inhibiting measures pursued by GIC at a time when exports have nosedived, and described as "impractical" the GIC demand that 20 per cent freight be paid to the vessel owner in advance and the balance after discharge of cargo.

Assocham has suggested to the 39th All India Expert Advisory Committee (AIEAC) of the RBI to make the GIC see reason and bail the exporters out.

The chamber has pointed out that the deadline for obtaining approval of vessels with export cargo loads and documents insisted upon by GIC at short notice are impossible to adhere to. In the event. They only end up paying extremely highpremium of one per cent on full cargo value.