EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

A PRESENTATION
ON THE CREDIT
INSURANCE
PRODUCTS

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

EXPORT CREDIT INSURANCE

Credit Insurance Covers to exporters against Credit Risk losses in

export of goods & services both under Short term and Medium and
LT
Credit Insurance covers to banks to protect them against risks of
non payment by exporters both under Short term and Medium and
LT
Domestic Credit Insurance covers to Exporters and Banks in
respect of their local sales and working capital finance, respectively
Overseas Investment Insurance covers to protect Indian
Entrepreneurs investing in Overseas Ventures (Equity/Loans)
against expropriation risks
Exchange Fluctuation Covers to exporters to protect them in
respect of their exchange losses under Medium and LT exports

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

ECGC An Export Promotion Institution

Provides credit risk covers to Exporters against non
payment risks of the overseas buyers / buyers
country in respect of the exports made.
Provides credit Insurance covers to banks against
lending risks of exporters
Assessment of buyers for the purpose of underwriting
Preparation of country reports
International experience to enhance Indian
capabilities
An ISO organisation excelling in credit insurance
services
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

VISION

To excel in providing credit insurance and traderelated services.

MISSION

To support the Indian Export Industry by providing

cost-effective insurance and trade-related services to
meet the growing needs of the Indian export market
through the optimal utilization of available resources.

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

A Brief Profile of ECGC

No. of offices

5 Regional offices and 51 Branches

( Head office and all Branches ISO certified)

Paid Up Capital

Reserves

IRDA registered Insurance company classified under General Insurance-Specialised Institution

Rs 900 Cr
Rs 913.42 Cr

Data for 2007-08

Premium Income

Claims paid

Rs 419.74 Cr

Recoveries

Rs 161.50 Cr

No. of Policies in force

No. of shipments covered

364848

No. of buyers covered

46799

No. of countries covered

No. of banks holding covers

No. of bank branches covered

No. of exporters financed by banks 20568

Rs 668.36 Cr

12533

193
65
3709

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Statistics
Particulars

Initial Years (1957-60)

Premium

Rs 43,109 (1957-58)

Rs 668.36 crores

Claims

Rs 4.51 lacs (1960)

Rs 419.74 crores

Recoveries

Rs 2.00 lacs (1960)

Rs 161.50 crores

Value of
shipments
covered

Rs 1.30 crores(1957 -58)

Rs 52766.57 crores

Policies in Force

146 no. (1957-58)

12533 no.

No. of banks
covered under
Guarantees

3 no. (1960)

65

No. of bank
branches

3 no.

3709 no.

Paid up Capital

Rs 50.00 lacs

Rs 900 crores

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2007-08

EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

EXPORT
INSURANCE

Goods

Loss or
Damage

Marine
Insurance

Receivables

Exchange
Risk
Hedging by
Authorized
Dealers

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Payment Risk

CREDIT
INSURANCE

EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Risks Covered by ECGC

RISKS
POLITICAL RISK
(Open Cover
and
Restricted cover )

COUNTRY

COMMERCIAL RISK

BUYER

LC / NON LC
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BANK

LC

EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

RISKS COVERED
COMMERCIAL RISKS
Insolvency of buyer/LC opening bank
Protracted Default of buyer
Repudiation by buyer

POLITICAL RISKS

War/civil war/revolutions
Import restrictions
Exchange transfer delay/embargo
Any other cause attributable to importing country

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Products offered to Exporters

Standard Policy
Small Exporters policy
Specific Shipment Policy (short term)
Export Turnover policy
Specific buyer wise policy
Consignment export policy
Global entity policy
Single buyer exposure policy
Multi buyer exposure policy
Software project exports policy
IT enabled (single customer) policy
IT enabled (multi customer) policy
SME Policy
Customer specific policy (Tailor made)

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Shipments ( Comprehensive
Risks) Policy

Whole Turnover principle- all exports covered

Selective options for LC/Associates/Consignments
90% cover
Advance Premium subject to Minimum premium of
Rs.10,000/Policy Period - 2 years
Credit limit (Drawee wise) on all the buyers
Monthly declarations with premium due
Premium rates schedule issued with Policy
No claim Bonus every year 5% subject to maximum
of 50%

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Small Exporters Policy

Export turnover not exceeding Rs.50 Lakhs
per annum
Advance Premium subject to Minimum
Premium Rs.2000/ Policy Period - one year
Cover for Commercial risks 95% and
Political risks 100%
No Claim bonus applicable
Quarterly Declarations
Premium payment as per standard premium
schedule attached to Policy
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Export Turnover Policy

Minimum anticipated Premium of Rs.10 Lakhs

Period of Policy- One year
Monthly or quarterly declaration as per exporters choice
Higher Discretionary Limit of drawee wise limits on
buyers (uptoRs100 lakhs for DP and Rs50 lakhs for DA)
Premium rates discounted by 20%
Premium payable upfront or in Quarterly instalments
based on anticipated exports
5% cash discount for upfront payment of full annual
premium

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Specific Shipment Policy (SSP)

Covering one shipment or One contract

Processing fee of Rs.1000/80% cover
Premium higher than standard premium rates
Upfront premium before issue of Policy
Commercial / Political risks and L/C
comprehensive risks covered
Submission of Shipment Statement and
realisation report later
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Specific Buyer wise Policy

Covering One buyer / One Bank

Processing fee Rs.1000/Period of cover - One year
All shipments to buyer on Non LC terms or
shipments under LC from bank covered
Quarterly/Annual premium payable upfront
based on projected exports
80% cover
Monthly or quarterly shipment statements
5% No Claim Bonus reduction on renewal

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Buyer Exposure Policy

Cover issued on exposure basis as opposed to turnover

( Exposure: Likely outstanding at any given point of time)
One time payment of premium on exposure
Single Premium rate based on country rating for Comprehensive
risks/Political risks
Processing fee Rs.1000/- on application
Cover is up to Exposure or the Loss limit (Credit Limit)
Premium payable either quarterly or annually on the loss limit
No monthly statements
Annual statement of shipments at the end of Policy period on
renewal
Coverage is 80%
Selective cover for each buyer at exporters discretion

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Multi buyer exposure policy

Cover on exposure as opposed to turnover and cover for more than 1

buyer
Discretion to choose buyers for cover with exporter and shall be
acceptable to ECGC
Processing Fee Rs.5000/- to accompany application
List of buyers to be given with proposal and any addition to be advised
Minimum 10% of projected turnover will be fixed as Aggregate Loss Limit
(ALL) which will be the Maximum Liability
Exporter can opt for higher exposure than 10% of turnover
Cover for each buyer is 10% of ALL as Single Loss Limit (SLL)
Exporter to have access to ECGC website for checking defaulter buyer
list.
Coverage is 80% and lower cover available with proportionate reduction
of premium. Single premium rate irrespective of country grading
Upfront premium payable before issue or in quarterly instalments
5% No Claim Bonus reduction on renewal

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Consignment (Stock holding Agent) Policy

Consignment exports covered under this exclusive cover for a period of

1 year
Premium on shipments to the agent payable on the turnover
Upfront premium quarterly / annually
Coverage 80%. Exporters holding Standard Policy will get 90% cover
One Agent / Multiple buyers
Cover on agent or on ultimate buyers as desired by exporter
Credit limits (Drawee wise limits) to be obtained on ultimate buyers
Discretionary Credit limit available upto 5% of turnover with max of
Rs100 lakhs
Longer period of 360 days for realization of bills
Premium payable on the basis of country classification and tenor of
90/180/360 days. Extension upto 540 days permissible with additional
premium
5% No Claim Bonus reduction on renewal

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Consignment Exports (Global Entity) Policy

Coverage for selling goods through exporters own subsidiary or branch

office during a period of 1 year
Premium on shipments to the GE payable on the turnover
Upfront premium quarterly / annually
Coverage 80%. Exporters holding Standard Policy will get 90% cover
One GE / Multiple buyers
Cover on GE or on ultimate buyers as desired by exporter
Commercial cover of Insolvency of GE only if Joint stock company and
equity stake not exceeding 49%; Otherwise only Political risks cover
Credit limits (Drawee wise limits) to be obtained on ultimate buyers
Discretionary Credit limit available upto 5% of turnover with max of Rs100
lakhs
Longer period of 360 days for realization of bills
Premium payable on the basis of country classification and tenor of
90/180/360 days. Extension upto 540 days permissible with additional
premium
5% No Claim Bonus reduction on renewal

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

MSME POLICY
Policy issued for small exporters with Export
Turnover not exceeding Rs10 Lakhs and
registered under MSME Act, 2006
Cover available upto Rs10 lakhs with annual
premium of Rs 5,000 and a processing fee of
Rs1,000
Cover available will be 90%
Maximum claim payable is Rs3 lakhs on any
buyer
No requirement of monthly declaration of
shipments
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

EXPORT FACTORING SERVICES

Factoring services involving finance, credit
protection, collection under one roof
Finance against export receivables facilitated
through a bank
Credit protection available after assessment of
buyers
Receivables financed without recourse
80% prepayment against invoices and balance after
90 days from due date less charges, if payment not
received
Details available on specific request at
factoring@ecgc.in
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Export Credit Insurance Covers to Banks

Covers for working capital granted by
commercial banks to Exporters at Pre
shipment and Post shipment stages
Covers available on exporter wise, bank
branch wise and bank wise
Losses due to protracted default /
Insolvency of exporters covered
Cover varies from 60% to 95%
depending on the type of cover
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

Export Stimulus Package

Additional cover of 5%, subject to maximum protection of
95% available for all MSME exporters
All exporters of Textiles ( including handicrafts and
handlooms), Gem & jewellery, leather, engineering goods,
carpets, project goods, auto components and chemicals
will also get the additional protection of 5%
Additional cover through the National Export Insurance
Account of the GOI
Bank advances to MSME borrowers for exports will get an
additional protection of 10% subject to maximum protection
of 85% under the Credit Insurance covers to banks
Additional cover available for shipments /advances made/
granted during the period 1st Jan 09 to 30th June 09

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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

In the Service of Exporters and

Banks since 1957
Thank You
Please visit us at: www.ecgc.in
Mail us at marketing@ecgc.in

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