Presented By :

Raunaq Singh
ECGC : AN OVERVIEW
 The ECGC Limited (Formerly Export Credit
Guarantee Corporation of India Ltd) is a company
wholly owned by the Government of India based
in Mumbai, Maharashtra.
 It provides export credit insurance support to
Indian exporters and is controlled by the Ministry
of Commerce.
 Government of India had initially set up Export
Risks Insurance Corporation (ERIC) in July 1957.
About ECGC
 It was transformed into Export Credit and
Guarantee Corporation Limited (ECGC) in 1964
and to Export Credit Guarantee Corporation of
India in 1983.
 ECGC Ltd is the seventh largest credit insurer of
the world in terms of coverage of national exports.
 The present paid-up capital of the company is Rs.
1200 crores
 Authorized capital Rs.5000 crores.
What does ECGC do …
 Provides a range of credit risk insurance covers to exporters
against loss in export of goods and services
 Offers guarantees to banks and financial institutions to
enable exporters obtain better facilities from them
 Provides Overseas Investment Insurance to Indian
companies investing in joint ventures abroad in the form of
equity or loan.
 Economic difficulties or balance of payment problems may
lead a country to impose restrictions on either import of
certain goods or on transfer of payments for goods
imported.
How does ECGC help exporters ?
 Offers insurance protection to exporters against payment
risks
 Provides guidance in export-related activities
 Makes available information on different countries with its
own credit ratings
 Makes it easy to obtain export finance from banks/financial
institutions
 Assists exporters in recovering bad debts
 Information on credit-worthiness of overseas buyers
 Political
&
Economic
Foreign changes Outbreak
buyer
of war
unable
or civil war
to pay
Risk
Associated
Protracted With Coup
Default of Exports or
Buyers insurrection

Risk Balance
Of of payment
Insolvency problems
Risk Covered …
Buyers Risks
 Insolvency
 Protracted Default
 Contract Repudiation
Bank Risks
 Insolvency of the Bank
 Protracted Default
Risk Covered (Contd..)
Political Risks
 Inconvertibility
 Contract Frustration
 Contract Cancellation
 Import Restriction
 Shipment Diversion
Risk Not Covered …
 Commercial disputes
 Causes inherent in the nature of goods
 Buyer’s failure to obtain Import license
 Insolvency/default of Agents
 Risks covered by other general Insurers like
transit loss etc.
 Exchange rate fluctuation
 Failure of Exporter to fulfill terms of contract
Various Products …
 Standard policy
 Small Exporters policy
 Export Turnover policy
 Export (Specific Buyer) Policy
 Specific Shipment Policy
 Services Policy
 Software policy
project policy
IT enabled service policy
 ECGC Policies

Special
Schemes
Financial (Transfer Guarantee )
Standard Policy Specific Policy Guarantees to To protect Banks
Banks Issuing L/C,
For short term For exports under Confirming L/C,
shipments Deferred Payments, Insurance Cover,
(180 Days) Project Exports, For
Line of Credit,
Service exports Giving credit Overseas Investment
to exporters Insurance & Exchange
Fluctuation Risk
Insurance
Standard Policy-Products
 Small Exporters Policy

Period of Policy: Twelve months as against 24 months in

the case of Standard Policy.

Minimum Premium: Premium payable will be determined

on the basis of projected exports on an annual basis
subject to a minimum premium of Rs. 2000/- for the
policy period
 Export Turnover Policy :

Turnover policy is a variation of the standard policy

for the benefit of large exporters who contribute
not less than Rs.10 lacs per annum towards
premium.
Thus all the exporters who will pay a premium of
Rs.10 lacs in a year are entitled to avail of it.
Export Finance Guarantee
 This guarantee covers post-shipment advances
granted by banks to exporters against export
incentives receivable in the form of cash assistance,
duty drawback, etc.

 The premium rate for this guarantee is 7 paisa per

Rs.100 per month and the cover is 75 percent.
Special Schemes ...
 TRANSFER GUARANTEE

 OVERSEAS INVESTMENT INSURANCE

 EXCHANGE FLUCTUATION RISK COVER

Application Process: ECGC
Application to the ECGC along
With Rs. 10,000 as initial premium

A statement to be submitted to the ECGC

Every month along with last month’s
Statements & the monthly insurance
Premium cheque (mandatory)

The list of exports also includes the value of export

Shipments & insurance premium to be paid

This is the general process to avail the services of ECGC

 Application is to be made to ECGC in case of non-
receipt of payment within 4 months from the due
date
 Documents required as proof
 E-mails
 Faxes
 Reminders sent through banking channel

In case of suspicion or fraud, ECGC can blacklist the

importer or exporter
“YOU FOCUS ON EXPORTS
WE COVER THE RISKS”

THANKYOU !!!