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Role of ECGC in Credit Insurance back
The Export Credit Guarantee Corporation of India Limited (ECGC in short) is a company wholly owned by the Government of India. 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. It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee of India in 1983.
Export Credit Insurance :
  1. Credit Insurance Covers to exporters against Credit Risk losses in export of goods & services both under Short term and Medium and LT
  2. Credit Insurance covers to banks to protect them against risks of non payment by exporters both under Short term and Medium and LT
  3. Domestic Credit Insurance covers to Exporters and Banks in respect of their local sales and working capital finance, respectively
  4. Overseas Investment Insurance covers to protect Indian Entrepreneurs investing in Overseas Ventures (Equity/Loans) against expropriation risks
  5. Exchange Fluctuation Covers to exporters to protect them in respect of their exchange losses under Medium and LT exports
What Is Credit Insurance? :
  1. Trade credit Insurance insures suppliers against the risk of non- payment of goods or services by their buyers
  2. This may be a buyer situated in the same country as the supplier (Domestic Risk) or
  3. A buyer situated in another country (Exporter Risk).
  4. The insurance covers non- payment as a result of insolvency of the buyer or non-payment after an agreed number of months after the due date.
  5. It may also insure the risk of non – payment following an event outside the control of the buyer or seller (political risk cover),for eg. The risk that money cannot be transferred from one country to another.
  6. Export credit insurance designed to protect exporters from the consequences of the payment risks , both political and commercial and enable them to expand their overseas business without fear or loss.
ECGC – An Export Promotion Institution :
  1. Provides credit risk covers to Exporters against non payment risks of the overseas buyers / buyer’s country in respect of the exports made.
  2. Provides credit Insurance covers to banks against lending risks of exporters
  3. Assessment of buyers for the purpose of underwriting
  4. Preparation of country reports
  5. International experience to enhance Indian capabilities
  6. An ISO organization excelling in credit insurance services
  7. Rated “AAA” by CRISIL for claim paying ability
Need For Export Credit Insurance :
  1. ECGC has seen raise in number of claims due to defaults and insolvencies.
  2. In terms of numbers of claims developed countries have shown steep increase in numbers of claims paid.
  3. Export credit insurance is a viable means of securing payment.
  4. It is an effective sales tool.
  5. It is also an effective financial tool.
Risks Covered :
Commercial Risks
  1. Insolvency of buyer / LC opening bank
  2. Protracted Default of buyer
  3. Repudiation by buyer
Political Risks
  1. War / civil war / revolutions
  2. Import restrictions
  3. Exchange transfer delay / embargo
  4. Any other cause attributable to importing country
Products offered to Exporters :
  1. Standard Policy
  2. Small Exporters policy
  3. Specific Shipment Policy (short term)
  4. Export Turnover policy
  5. Specific buyer wise policy
  6. Consignment export ( Stock holding agent)policy
  7. Consignment export (Global entity) policy
  8. Single buyer exposure policy
  9. Multi buyer exposure policy
  10. Software project exports policy
  11. IT enabled (single customer) policy
  12. IT enabled (multi customer) policy
  13. SME Policy
  14. Customer specific policy (Tailor made)

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Contact

  • Agricultural and Processed Food Products Export Development Authority (APEDA)
    (Ministry of Commerce & Industry, Govt. of India)

  • NCUI Building 3, Siri Institutional Area, August Kranti Marg, New Delhi - 110 016
    Phone : 91-11-41486013, 20863919, 20867008, 20867007