Effective from 1 March 2009, the Export Coverage Scheme (ECS) is designed to provide Singapore-based companies with a market-based solution to provide additional capacity of short term trade credit insurance against buyers default to promote Singapore's exports.

Administered through Programme Administrator, Aon Singapore, the ECS will have two key components:

(i) Subsidy of insurance premium: To make trade credit insurance more accessible to qualifying Singapore based companies* by subsidising 50% of the insurance premium

(ii) Top-up Arrangement: To increase access to additional trade credit insurance capacity by providing a top-up insurance arrangement with market players and where necessary, IE Singapore

The ECS is expected to cover about S$4Bil worth of trade turnover insured and to benefit 1,000 Singapore-based companies.

Features of the EPC as summarised below:

	Subsidy of Insurance Premium	Top-up Arrangement
Eligible Companies	Singapore-based companies with at least 3 strategic business functions* in Singapore Group turnover of no more than S$80mil	Singapore-based companies with at least 3 strategic business functions* in Singapore
Support by Government	50% of premium subsidy, subject to maximum premium subsidy of S$100,000 per qualified* Singapore-based company	IE Singapore will work with a pool of top-up underwriters to increase Singapore-based companies access to additional trade credit insurance coverage
Type of Cover	Insolvency and protracted default of end buyers
Scope of Cover	Export and/or domestic sales Whole turnover / Specific named buyers / Transaction
Policy Period	1 year
Maximum Payment Terms	Up to 180 days
Indemnity Level	Up to 90% of net insured loss

* Qualifying Singapore-based companies would need to have at least 3 strategic business functions in Singapore and has a group turnover of no more than S$80mil. Strategic business functions refer to activities such as banking and finance, marketing and business planning, procurement/logistics, training and personnel management, investment planning/coordination, research and development, technical support and manufacturing.

To Find Out More

Please contact Programme Administrator, Aon Singapore at 1800-AONIECS (1800 2664327) or visit http://www.aoniecs.sg/.