3. The Government of India set up the Export Risks
Insurance Corporation (ERIC) in July 1957 in order to
provide export credit insurance support to Indian
exporters.
It was transformed into Export Credit & Guarantee
Corporation Limited (ECGC) in 1964.
To bring the Indian identity into sharper focus, the
corporation’s name was once again changed to the
present Export Credit Guarantee Corporation of India
Limited in 1983.
4. Mr. N. Shankar (Chairman &M.D) and Mrs. Geetha
Muralidhar is the Executive Director of ECGC and it
functions under the Administrative Control of the
Ministry of Commerce and is managed by a Board of
Directors representing Government, Banking,
Insurance, Trade, Industry etc.
It is the fifth largest credit insurer of the world in terms
of coverage of national exports.
Present paid-up capital is Rs.1200 crores and
authorized capital Rs.5000 crores.
5. Provides a range of credit risk insurance covers to
exporters against loss in export of goods and services.
Offers Export Credit Insurance covers to banks and
financial institutions to enable exporters to obtain
better facilities from them.
Provides Overseas Investment Insurance to Indian
companies investing in joint ventures abroad in the
form of equity or loan.
It provide guidance in export related activities.
6. It provides information on credit-worthiness of
overseas buyers.
It provides information on about 180 countries with its
own credit rating.
It assists exporters in recovering bad debts.
7. Far-reaching political and economic changes that are
sweeping the world.
An outbreak of war or civil war may block or delay
payment for goods exported.
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.
Export credit insurance is designed to protect exporters
from the consequences of the payment risks, both
political and commercial, and to enable them to expand
their overseas business without fear of loss.
8. There are various policy schemes offered by the
Corporation for insuring credit risks related to
receivables of Project Exporters for their Medium and
Long Term Transaction overseas.
Contract Policy
Shipment(s) Policy
Services Policy
Construction Works Policy
Overseas Investment Insurance
9.
10. Specific Contract Policy can be obtained by exporters
that have secured contract for Turnkey Projects, or any
other contract which involves supplies of capital goods
and services for erection and commissioning of the
project. The cover provides protection against non-
receipt of payments due to commercial and/or political
risks.
Loss Coverage: 90%
11.
12. Specific Shipments Policy can be obtained by
exporters that have secured contract for supply of
capital goods such as machinery or equipment on
deferred terms of payment. The cover provides
protection against non-receipt of payments due to
commercial and/or political risks.
Loss Coverage: 90%
13.
14. Specific Services Policy covers contracts under which
only services are to be provided. The cover offers
protection to the Indian Exporters against payment
risks involved in rendering services to the foreign
buyers. A wide rage of services like technical or
professional, hiring or leasing can be covered under
these policies.
Loss Coverage: 90%
15.
16. Construction Works Policy is designed to provide
cover to an Indian Contractor who executes a civil
construction job abroad. The cover provides protection
against non-receipt of payments due to commercial
and/or political risks.
Loss Coverage: 85%
17.
18. Overseas Investment Insurance provide cover for the
investments made by Indian investor abroad in joint
ventures or in their wholly owned subsidiary either in
the form of equity or untied loan. The basic principle is
that the investment should emanate from India and
benefit of dividend/interest there from should accrue to
India. The cover provides protection against non-
receipt of receivables due to specified political risks.
Cover available up to 15 years. Extendable up to 20
years with reduced insured amount.
Loss Coverage: 90%
19. RISKS
COMMERCIAL POLITICAL
LC OPENING
BANK RISKS
INSOLVENCY OF
BUYER
PROTRACTED
DEFAULT OF
BUYER
BUYER’S
FAILURE TO
ACCEPT GOODS
WAR, CIVIL WAR,
REVOLUTIONS IN
BUYER’S
COUNTRY
NEW IMPORT
RESTRICTIONS
TRANSFER
DELAYS
INSOLVENCY
DEFAULT
20. Risks of loss due to commercial or quality disputes.
Insolvency or default of any agent of the exporter or of
the collecting bank.
Loss or damage to the goods which can be covered by
general insurers.
Exchange Rate Fluctuation
Failure of the exporter to fulfill the terms of the
contract or negligence on his part.
21. Obtain indicative premium rate at bid stage.
Obtain in principle approval.
Seek cover after payment of premium.
Declaration of overdue payments.
Filing of claim within 12 months from due date.
Sharing of recovery.
22. Cover can be either for Political or Comprehensive
Risks.
Add on pre-shipment risk cover can also be obtained.
Cover for full insurable value including retention
portion.
Cover for third country exports as well.
Premium in installments.
Reduced premium for projects funded by Multi-lateral
agencies.
Reduced loss coverage with proportionate reduction in
premium.
23. First Prize for Excellence Implementation of Official
Language under the scheme "Shield for Excellent
Official Language Implementation" by Ministry of
Commerce during 2013-14.
24. ECGC of India has been conferred with the “First
Prize” under “ Indira Gandhi Rajbhasha Award” in
Region “B” for excellent implementation of Rajbhasha.
Smt. Geetha Mularidhar , Executive Director, has
received this prestigious award from Honorable
President of India Shri Pranab Mukherjee on 15th
November 2014 in a ceremony organized at Vigyan
Bhavan, New Delhi.
