ECGC Kumar sachin deo

ROLL NO -053
AN OVER VIEW OF ECGC
 The Government of India set up the Export Risks Insurance
Corporation (ERIC) in July 1957 to provide export credit
insurance support to Indian exporters.
 It was transformed into Export Credit Guarantee Corporation of
India Limited in 1983.
 ECGC is a company wholly owned by the Government of India
with paid up Rs.800 crores.
 It functions under the administrative control of the Ministry of
Commerce.
 It is managed by a Board of Directors representing Government,
Banking, Insurance, Trade, Industry, etc.
AN OVER VIEW OF ECGC CONT.
 5 Regional Offices, 51 Branches network connected by WAN
and services are web based.
 Corporate Agency Agreement with 15 Commercial Banks to
sell its products.

 About 81 Banks with more than 4242

branches are covered under Guarantee.

 It has 24 products to suit the requirements of various kinds of

exporters and banks.
ACCREDITATIONS
 Member of International Credit Insurers
Association since inception.

 Registered with IRDA on 27.9.2002.

 iAAA rating by ICRA Ltd. for claims paying

ability.
OTHER ACTIVITIES
 Provides overseas investment insurance to Indian companies
investing in joint ventures abroad in the form of equity or
loans.
 Provides guidance in export related activities.
 Makes available information on different countries with its
credit ratings.
 Makes it easy to obtain export finance from banks/financial
institutes.
 Assists exporters in recovering bad debts.
 Information on credit- worthiness of overseas buyers.
ROLE OF ECGC AS AN
EXPORT CREDIT INSURER
 Providing credit insurance covers to exporters
against loss in export of goods & services
 Providing export credit guarantees to banks &
FI’s to enable exporters obtain better facilities
from them.
 Providing Overseas Investment Insurance to
Exporters - Indian Entrepreneurs in Overseas
Ventures (Equity/Loans).
 Types of insurance covers Small
Exporters
Full To Policy
encourage
Fledged Small
Exporters Shipment
Factoring
To protect To Cover all Comprehensive
both Bank Transaction risk policy
& Exporter s

Consignment
Exports
Policy
To cover
Consignmen SHORT
SHORT TERM
TERM
For Large • Export
Exporters
t exports
COVERS Turnover
COVERS
• Multi buyer
exposure
• Tailor made
To cover
policy
To cover
Services
Specific
and
• Services Policy software
Transaction
s
• Software exports
To cover
project policy Specific
Buyer
• IT enabled • Imports Specific
services policy (specific buyer) Shipments
• Buyer Policy
Exposure
RISK COVERED

Commercial risks
 Insolvency of buyer

 Default of buyer

 Repudiation by buyer

Political risks
 War/civil war/revolutions

 Import restrictions

 Exchange transfer delay/embargo

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
Cause of loss for exporters and claims paid data for 2005-06

No.of claims Cause of Loss Claims paid

Rs
64 Insolvency 230,048,391
150 Non Acceptance 94,480,854
1 Others 962,473
1 Political 497,869
394 Protracted Default 684,351,150
610 TOTAL 1,010,340,737
COMPETITORS
 ICICI Lombard General Insurance Company Ltd
 Bajaj Allianz General Insurance Company Ltd.
 EXPORT-IMPORT BANK OF INDIA
THANK YOU