The document provides information on the Export Credit Guarantee Corporation of India (ECGC). It discusses that ECGC is a government owned enterprise that provides credit insurance facilities to exporters and banks in India. It offers various export credit risk insurance products to suit the requirements of Indian exporters and banks. Some of its main policies discussed are the contract policy, shipment policy, construction works policy, services policy, and overseas investment insurance. ECGC aims to promote and facilitate Indian exports through providing these insurance covers.

1. Prestige Institute of Management & Research
Presented By –
Isha Joshi(BFT – IV sem)

2. What is ECGC
Government owned enterprise
Provides credit insurance facilities to exporters and banks in
India
Works under administrative control of Ministry of Commerce &
Industry
Managed by a Board of Directors comprising representatives of
the Government, Reserve Bank of India, banking , insurance and
exporting community.

3. It has evolved various export credit risk insurance products to
suit the requirements of Indian exporters and commercial banks
The seventh largest credit insurer of the world
Essentially an export promotion organization
Seeking to improve the competitive capacity of Indian
exporters by giving them credit insurance covers comparable to
those available to their competitors from most other countries
It keeps its premium rates at the lowest level possible.

4. Functions of ECGC
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

5. How does ECGC helps
Exporters
Offers insurance protection to exporters against payment risks
Provides guidance in export-related activities
Makes available information on different countries with it's
own credit ratings
Makes it easy to obtain export finance from banks/financial
institutions
Assists exporters in recovering bad debts
Provides information on credit-worthiness of overseas buyers

6. Vision & Mission
The vision of Export Credit Guarantee Corporation of
India Ltd. Is to excel in providing export credit
insurance and trade related services.
The mission of ECGC is to support the Indian Export
Industry by providing cost effective insurance and
trade related services to meet the growing needs of
Indian export market by optimal utilization of
available resources.

7. Objectives of ECGC
To encourage and facilitate globalization of India’s trade
To assist Indian exporters in managing their credit risks by
providing timely information on worthiness of the buyers,
bankers and the countries.
To protect the Indian exporters against unforeseen losses which
may arise due to failure of the buyer, bank or problems face by
the country of the buyer by providing cost effecting credit
insurance covers.

8. To facilitate availability of adequate bank finance to the
Indian exporters by providing surety insurance covers for
bankers at competitive rates
To develop world class expertise in credit insurance among
employees and ensure continuous innovation and achieve
the highest customer satisfaction by delivering top quality
services
To educate the customers by continuous publicity and
effective marketing

9. Risks Covered
Risks Commercial
Risks
L/C Opening
Banks Risks
Political
Risks

10. Political Risks
Import Restrictions
War/ civil war/ Revolution
Additional Freight or insurance charges
Any other cause attributable to importing country

11. Commercial Risks
Insolvency of the Buyer
Protracted default of the Buyer
Buyer’s failure to accept the goods

12. L/C Opening Bank’s Risks
Insolvency of the L/C opening Bank
Failure of the L/C opening Bank to make
payment due within a specified period
Non – payment or non – acceptance due to
discrepancies in the L/C

13. Risks not Covered
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 fulfil the terms of the
contract or negligence on his part

14. ECGC Policies
Policies
Export Credit
Insurance for
Exporters
Export Credit
Insurance for Banks
Special Schemes

15. Export Credit Insurance for
Exporters
Short Term Medium and
Long Term
 Shipments Comprehensive
Risk Policy
 Small Exporters Policy
 Shipments Policy
 Services Policy
 Export Turnover Policy
 Export Specific Buyer Policy
 Consignments Export Policy
 IT – Enabled Services Policy
 Construction Work
Policy
 Letter of Credit
Confirmation Cover
 Specific Policy for
Supply Contract
 Specific Shipment
Policy
 Specific Services
Policy

16. Export Credit Insurance to
Banks
 Packing Credit Guarantee
 Export Production Finance Guarantee
 Post – Shipment Credit Guarantee
 Export Performance Guarantee
 Export Finance (Overseas Lending)
Guarantee

17. Special Schemes
 Buyer’s Credit Covers
 Line of Credit Cover
 Overseas Investment Insurance

18. Some of the Main Policies
Contract Policy
Shipment Policy
Constructions Work Policy
Services Policy
Overseas Investment Insurance

19. Contract Policy
Exporters that have secured contract for Turnkey Projects, EPC
contract or any other contract which involves supplies of
capital goods and services for commissioning of the project
The cover provides protection against non – receipt of
payments due to commercial and/or political risks
Risks Covered – Political, Legal and L/C opening bank risks
Loss Coverage – 90%

20. Obligations –
 Obtain indicative premium rate at bid stage.
 Seek cover after payment of premium.
 Advise progress of project in accordance with PEM
guidelines.
 Declaration of overdue payments.
 Filing of claim within 12 months from due date.
 Sharing of recovery.

21. Highlights –
 Cover can be either for Political or Comprehensive
Risks
 Pre shipment risk cover can also be obtained
 Premium in instalments
 Reduced premium for projects funded by Multi-lateral
agencies

22. Shipment Policy
Exporters that have secured contract for supply of
capital goods such as machinery or equipments on
deferred terms of payment
The cover provides protection against non –
receipt of payments due to commercial and/or
political risks

23. Risks Covered – Political, Legal and L/C
opening bank risks
Loss Coverage – 90%
Obligations and Highlights are the same as
mentioned in the previous slides

24. 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 range of services like technical or professional,
hiring or leasing can be covered under these policies

25. Risks Covered – Political, Legal and L/C opening
bank risks
Loss Coverage – 90%
Obligations and Highlights are the same as
mentioned in the previous slides

26. Construction Works Policy
It 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

27. Risks Covered – Political and Legal Risks
Loss Coverage – 85%
Obligations and Highlights are the same as
mentioned in the previous slides

28. Overseas Investment
Insurance
Provides cover for the investments made by Indian investor
abroad in joint ventures or in their wholly owned subsidiary
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.

29. Political Risks Covered –
 War, Civil War, Revolutions in buyer’s country
 Expropriation
 Restrictions on remittances
Loss Coverage – 90%
Obligations are same as mentioned in the
previous slides

30. Highlights –
• Cover for Political Risks only.
• Investments in form of cash or through export of goods and
services.
• Cover available up to 15 years
• Extendable up to 20 years with reduced insured amount.
• Reduced loss coverage with proportionate reduction in premium.