Ecgc

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Ecgc

  1. 1. Presented By : Avdhesh Sharma Mukesh Shah
  2. 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. 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. 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. 5. ECGC - STRENGTHS …  Expertise in this line  Berne union membership  Large database  Extensive service network  Reinsurance treaties  International alliances
  6. 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. 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. 8. Risk Covered … Buyers Risks  Insolvency  Protracted Default  Contract Repudiation Bank Risks  Insolvency of the Bank  Protracted Default
  9. 9. Risk Covered (Contd..) Political Risks  Inconvertibility  Contract Frustration  Contract Cancellation  Import Restriction  Shipment Diversion
  10. 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. 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. 12. Special Schemes ...  TRANSFER GUARANTEE  OVERSEAS INVESTMENT INSURANCE  EXCHANGE FLUCTUATION RISK COVER
  13. 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. 14. “YOU FOCUS ON EXPORTS WE COVER THE RISKS” THANKYOU !!!

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