What is ECGC? 

ECGC is a Corporation, set up by the Government of India for providing export credit insurance cover to Indian exporters and banks. It functions under the administrative control of the Ministry of Commerce. The Corporation is in its GOLDEN JUBILEE year of providing the services to exporters and banks. Over the years, it has evolved different export credit risk insurance products to suit the requirements of Indian exporters and commercial banks.
ECGC is 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.

Services:

Credit Insurance Policies:

Standard policies

• Shipment Comprehensive Risk(SCR)Policy
• Small Exporter’s Policy 
•  Export Turnover Policy

Specific Policies

• Buyer Specific Policy
• Specific Shipment Policy-Short Term(SSP-ST)

Exposure Policies

• Buyer Exposure Policy
• Multi-Buyer Exposure Policy

Service Sector Policies

• Services Policy
• Software Service Policy
• IT – Enabled Services (Specific Customers) Policy
• IT – Enabled Services (Multi Customers) Policy

Consignment Policies

• Consignment Exports Policy(Global Entity)
• Consignment Exports Policy(Stockholding Agent)

Factoring Services

Export Credit Insurance Cover for Banks

Special Schemes

Shipment Comprehensive Risk (SCR) Policy:

An exporter whose annual export turnover is more than Rs.50 Lakh is eligible for this Policy.

Period of the policy: 24 months

Exclusions Permitted

• Exports to Associates
• Letters of Credit
• Consignment Exports

Risks Covered

• Commercial Risks
• Political Risks
•  LC Opening Bank Risks

Percentage of Cover: 90%

Minimum Premium: Rs. 10,000/- adjustable

Important Obligations of the Exporter

• Obtaining valid credit limit on buyers and banks
• Premium payable in advance on the basis of projected turnover
• Cash discounts of 1% and 5% on the premium on projected exports on quality and annual exports respectively
• Monthly Declaration of shipments
• Declaration of payments overdue by more than 30 days
• Filing of claims within 24 months
• Sharing of recovery

Highlights

• Lowest premium Rate
• No Claim Bonus(NCB) of 5% every year
• Discrepancy cover for LC
• Automatic approval of resale/reshipment upto 25% of GIV
• Increased discretionary limit.
  

 Small Exporter’s Policy:

• Export turnover up to Rs.50 Lakhs.
  
  Period of the policy: 12 months

Exclusions Permitted

• Exports to Associates
• Letters of Credit
• Consignment Exports

Risks Covered

• Commercial Risks
• Political Risks
• LC Opening Bank Risks

Percentage of Cover:

• 95% for commercial risks
• 100% for political risks

Minimum Premium: Rs. 2,000/- adjustable

Important Obligations of the Exporter

• Obtaining valid credit limit on buyers and banks
• Premium payable in advance on the basis of projected turnover
• Cash discounts of 1% and 5% on the premium on projected exports on quality and annual exports respectively
• Quarterly Declaration of shipments
• Declaration of payments overdue by more than 30 days
• Filing of claims within 12 months
• Sharing of recovery

Highlights

• Highest Coverage/compensation
• Lowest premium Rate
• No Claim Bonus(NCB) of 5% every year
• Discrepancy cover for LC
• Automatic approval of resale/reshipment up to 25% of GIV
• Increased discretionary limit.
  

Export Turnover Policy :

Turnover policy is for the benefit of large exporters who contribute not less than Rs.10 Lakhs per annum towards premium. The policy envisages projection of the export turnover of the policyholder for a year and the initial determination of the premium payable on that basis, subject to adjustment at the end of the year based on the actual.

Period of the policy: 12 months

Risks Covered

• Commercial Risks
• Political Risks
• LC Opening Bank Risks

Percentage of Cover:

• 90% for commercial risks

Important Obligations of the Exporter

• Premium will be payable in four equal quarterly installments in advance.
• Submission of Quarterly statement(s) of shipment(s)
• Declaration of overdue payments
• Filing of claims within 24 months from due date
• Sharing of recovery

Highlights

• Simplified procedure for payment of premium
• 10% of projected premium is waived when exports increase beyond projection
• ncreased discretionary limit.
  

Buyer Specific Policy :

The Specific Buyers policy provides cover for shipments made to a particular buyer or set of buyers. An exporter not handling the standard Policy can avail of this to cover their shipments to one or more buyers. Exporters holding Standard Policy can also avail this policy for covering shipments to individual buyers, if all shipments to such buyers have been permitted to be excluded from the preview of the Standard Policy.

Period of the policy: 12 months

Risks Covered

• Commercial Risks
• Political Risks
• Insolvency or Default of LC Opening Bank Risks

Percentage of Cover: 80%

Important Obligations of the Exporter

• Deposit Premium on quarterly in advance.
• Submission of shipment declarations quarterly
• Declarations of payment overdue for more than 30 days.
• Filing of claims within 12 months from due date
• Sharing of recovery

Highlights

• Selective buyers can be insured.
• Option to exclude LC exports
• Premium rate can be reduced proportionately.

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