1. Presented By :
Avdhesh Sharma
Mukesh Shah

2. ECGC : AN OVERVIEW
 Established on 30th July 1957
 Chairman & M.D – Dr. Shri Christy Fernandez
 Board of Directors
 Ministry of Commerce
 Authorized Capital Rs.1000 crore
 Paid-up Capital of Rs.600 crore (Proposed Rs.800
crore)
 5 Regional Offices, 51 Branches
 Registered with IRDA on 27.9.2002.
 NUMBER OF EMPLOYEES = 625

3. 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.

4. 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

5. ECGC - STRENGTHS …
 Expertise in this line
 Berne union membership
 Large database
 Extensive service network
 Reinsurance treaties
 International alliances

6. Country Risk Classification …
Risk category ECGC
classification
Insignificant A1
Low A2
Moderate B1
High B2
Very High C1
Restricted C2
Off Credit D

7. ECGC OVERALL PERFORMANCE
1957 TO 2005 ….
Year/ Performance 1957 2004 2005
Policy Holders (In Number) 146 11000 12492
Export Value Covered (Rs Crore) 1.3 3,37,792 3,75,390
Premium Income (Rs Lakh ) 0.43 44,500 51,500
Claim Paid ( Rs Lakh) 4.51 45,000 35,100
No. Branches 1 36 50
Product Portfolio 1 24 25

8. Risk Covered …
Buyers Risks
 Insolvency
 Protracted Default
 Contract Repudiation
Bank Risks
 Insolvency of the Bank
 Protracted Default

9. Risk Covered (Contd..)
Political Risks
 Inconvertibility
 Contract Frustration
 Contract Cancellation
 Import Restriction
 Shipment Diversion

10. 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

11. 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

12. Special Schemes ...
 TRANSFER GUARANTEE
 OVERSEAS INVESTMENT INSURANCE
 EXCHANGE FLUCTUATION RISK COVER

13. Other Developments …
 Premium rationalization
 Wide area network
 E- connectivity
 Branch expansion
 Banc assurance arrangements
 Sales promotion agents
 Tie-up with National Insurance
 Review of classification of countries
 Streamlining claim procedures

14. “YOU FOCUS ON EXPORTS
WE COVER THE RISKS”
THANKYOU !!!