I give below abstract of a RBI guidline from their circular on Rupee export credit. Please give me your opinion.
RBI - DBOD No.DIR. (Exp).BC. 01 /04.02.02/2006-07 July 1, 2006
Circular on Rupee Export Credit
2.6 ECGC Whole Turnover Post-shipment Guarantee Scheme
2.6.1 The Whole Turnover Post-shipment Guarantee Scheme of the Export Credit Guarantee Corporation of India Ltd. (ECGC) provides protection to banks against non-payment of post-shipment credit by exporters. Banks may, in the interest of export promotion, consider opting for the Whole Turnover Post-shipment Policy. The salient features of the scheme may be obtained from ECGC.
2.6.2 As the post-shipment guarantee is mainly intended to benefit the banks, the cost of premium in respect of the Whole Turnover Post-shipment Guarantee taken out by banks may be absorbed by the banks and not passed on to the exporters
The significant point here is, RBI advises banks not to pass on the ECGC premium to exporters towards the Post shipment guarantee of ECGC.
It is intentionally silent about ECGC premium to be charged to exporters in case of ECGC pre-shipment advances guarantee. Therefore, it can be safely concluded that if ECGC premium for pre-shipment advances is charged to the exporter then he should the beneficiary of the claim amount. In short, whoever pays the insurance premium should be the beneficiary. This is the universal law.