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A presentation on ECGC

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A presentation on ECGC

  1. 1. A presentation on COMPARITIVE STUDY OF ecgc AND ITS COMPETITORS & SWOT ANALYSIS
  2. 2. Introduction:- In an export trade, exporters needs the finance at different stages. The finance is required for processing, manufacturing, assembling, procuri ng and packing the goods for export in the pre- shipment stages & During the intervening period between the shipment of goods and the receipt of payment post-shipment credit is required by the exporters at post shipment stages.
  3. 3. Need of export credit insurance:- The export credit plays a very important role in the International trade system. In developed and developing countries, it has been a tool for pushing exports of manufactured and capital goods, as well as some specific services. Due to higher risk in International market, credit insurance becomes important. Export credit insurance protects exporters against the risk of non-payments by the foreign buyers.
  4. 4. LIST OF THE MAJOR COMPANIES PROVIDING EXPORT CREDIT INSURANCE:- Public sector: i.) ECGC ii.) New India Assurance iii.) SBI general insurance  Private sector: i.) ICICI Lombard ii.) IFFCO-Tokio
  5. 5. INTRODUCTION OF EXPORT CREDIT GUARANTEE CORPORATION:- ECGC ( Export Credit Guarantee Corporation) of India Ltd, was established in July, 1957. It functions under the administrative control of the Ministry of Commerce & Industry and Government of India. It is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India. Its headquarter is in Mumbai, Maharashtra.
  6. 6. Objectives:- To promote export mainly by i.) Protecting Exporters against COMMERCIAL & POLITICAL RISKS in export proceeds ii.) Protecting Banks against RISK OF DEFAULT in export credit. iii.) To facilitate availability of adequate bank finance to the Indian exporters by providing insurance cover for banker in the form of guarantee at competitive rate.
  7. 7. COMPETITORS OF ECGC:- In the Indian market the competitors of ECGC are  PUBLIC SECTOR:- i.) New India Assurance ii.) SBI General Insurance  PRIVATE SECTOR:- i.) ICICI Lombard ii.) IFFCO-Tokyo
  8. 8. Comparison through different parameters:- i.)Risk coverage by companies ii.)Risk exemptions iii.)Transactions modes iv.)Countries coverage v.)Exporters Reach vi.)Claims vii.)Bank loan assistance to exporters viii.)Premium Calculation
  9. 9. 1. RISKS COVERAGE
  10. 10. Basis of difference ECGC SBI- GENERAL ICICI- Lombard IFFCO- TOKIO New India Assurance Restriction by Govt. COVERED COVERED COVERED COVERED COVERED Non- payment due to war COVERED COVERED COVERED COVERED COVERED Cancellation of import license COVERED COVERED COVERED COVERED COVERED Delay in payment COVERED NOT COVERED NOT COVERED COVERED COVERED Diversion of Voyage COVERED NOT COVERED NOT COVERED NOT COVERED NOT COVERED Natural disaster NOT COVERED NOT COVERED NOT COVERED COVERED NOT COVERED
  11. 11. 2.RISK EXCLUSION
  12. 12. Basis of difference ECGC SBI General ICICI- Lombard IFFCO- Tokio New India Assurance Exchange rate fluctuation NOT COVERED NOT COVERED NOT COVERED NOT COVERED NOT COVERED Loss of goods NOT COVERED COVERED NOT COVERED NOT COVERED NOT COVERED Trade dispute NOT- COVERED NOT COVERED NOT COVERED NOT COVERED NOT COVERED Default and insolvency COVERED COVERED NOT COVERED NOT COVERED NOT COVERED Delay in payment COVERED NOT COVERED NOT COVERED NOT COVERED NOT COVERED Non – payment NOT COVERED NOT COVERED NOT COVERED NOT COVERED NOT COVERED Non- COVERED NOT NOT NOT NOT
  13. 13. 3.MODES OF PAYMENTS
  14. 14. Types of Payments ECGC SBI- General Insurance ICICI- Lombard IFFCO- Tokio New India Assurance Letter of Credit COVERED COVERED COVERED COVERED COVERED Document against Payment COVERED NOT- COVERED NOT- COVERED NOT- COVERED NOT- COVERED Open Delivery COVERED NOT- COVERED NOT- COVERED NOT- COVERED NOT- COVERED Document against Acceptance COVERED NOT- COVERED NOT- COVERED NOT- COVERED NOT- COVERED
  15. 15. 4.COUNTRIES COVERAGE
  16. 16. ICICI-Lombard SBI-General Insurance New India Assurance IFFCO-Tokio Egypt Iran Iceland -------------- Jordan Cuba Tunisia -------------- Libya Pakistan --------------- Yemen Iraq --------------- Fiji Sudan --------------- Sudan ----------------
  17. 17. 5.COVERAGE
  18. 18. COMPANY COVERAGE ECGC 80%-90 % New India Assurance 85 % IFFCO-TOKIO 90 % ICICI-Lombard 90 % SBI General insurance N.A
  19. 19. 6.PREMIUM CALCULATION
  20. 20. ECGC SBI-General Insurance ICICI- Lombard IFFCO-Tokio New India Assurance Country basis Turnover Country basis Country basis Country basis On the basis of Term of Payment Turnover Re-insurance quote & support
  21. 21. Bank assistance:- ECGC provides export credit insurance covers to the banks and financial institutions to enables the exporters to obtain better facilities from them i.e. from banks which is formally known as guarantee. No other competitor of the ECGC provides export credit insurance cover to the banks.
  22. 22. SWOT Analysis:- SWOT analysis of ECGC is as under : i.) Strength :- a.) Maximum country coverage. b.) Maximum coverage from risk. ii.) Weakness:- a.) Communication gap iii.) Opportunities:- a.) In the sector of factoring iv.) Threats:- a.) Weakness will become threat.

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