THE CREDIT INSURANCE PRODUCTS
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THE CREDIT INSURANCE PRODUCTS
EXPORT CREDIT INSURANCE

Credit Insurance Covers to exporters against Credit Risk losses in export of goods & services both under Short term and Medium and LT
Credit Insurance covers to banks to protect them against risks of non payment by exporters both under Short term and Medium and LT
Domestic Credit Insurance covers to Exporters and Banks in respect of their local sales and working capital finance, respectively
Overseas Investment Insurance covers to protect Indian Entrepreneurs investing in Overseas Ventures (Equity/Loans) against expropriation risks
Exchange Fluctuation Covers to exporters to protect them in respect of their exchange losses under Medium and LT exports
ECGC – An Export Promotion Institution
Provides credit risk covers to Exporters against non payment risks of the overseas buyers / buyer’s country in respect of the exports made.
Provides credit Insurance covers to banks against lending risks of exporters
Assessment of buyers for the purpose of underwriting
Preparation of country reports
International experience to enhance Indian capabilities
An ISO organisation excelling in credit insurance services
A Brief Profile of ECGC
No. of offices 5 Regional offices and 51 Branches
( Head office and all Branches ISO certified)
Paid Up Capital Rs 900 Cr
Reserves Rs 913.42 Cr
IRDA registered Insurance company classified under General Insurance-Specialised Institution
Data for 2007-08
Premium Income Rs 668.36 Cr
Claims paid Rs 419.74 Cr
Recoveries Rs 161.50 Cr
No. of Policies in force 12533
No. of shipments covered 364848
No. of buyers covered 46799
No. of countries covered 193
No. of banks holding covers 65
No. of bank branches covered 3709
No. of exporters financed by banks 20568
Statistics
Risks Covered by ECGC
RISKS COVERED
COMMERCIAL RISKS
Insolvency of buyer/LC opening bank
Protracted Default of buyer
Repudiation by buyer
POLITICAL RISKS
War/civil war/revolutions
Import restrictions
Exchange transfer delay/embargo
Any other cause attributable to importing country
Products offered to Exporters
Standard Policy
Small Exporters policy
Specific Shipment Policy (short term)
Export Turnover policy
Specific buyer wise policy
Consignment export policy
Global entity policy
Single buyer exposure policy
Multi buyer exposure policy
Software project exports policy
IT enabled (single customer) policy
IT enabled (multi customer) policy
SME Policy
Customer specific policy (Tailor made)
Shipments ( Comprehensive Risks) Policy
Whole Turnover principle- all exports covered
Selective options for LC/Associates/Consignments
90% cover
Advance Premium subject to Minimum premium of Rs.10,000/-
Policy Period - 2 years
Credit limit (Drawee wise) on all the buyers
Monthly declarations with premium due
Premium rates schedule issued with Policy
No claim Bonus – every year 5% subject to maximum of 50%
Small Exporters Policy
Export turnover not exceeding Rs.50 Lakhs per annum
Advance Premium subject to Minimum Premium Rs.2000/-
Policy Period - one year
Cover for Commercial risks 95% and
Political risks 100%
No Claim bonus applicable
Quarterly Declarations
Premium payment as per standard premium schedule attached to Policy
Export Turnover Policy
Minimum anticipated Premium of Rs.10 Lakhs
Period of Policy- One year
Monthly or quarterly declaration as per exporter’s choice
Higher Discretionary Limit of drawee wise limits on buyers (uptoRs100 lakhs for DP and Rs50 lakhs for DA)
Premium rates discounted by 20%
Premium payable upfront or in Quarterly instalments based on anticipated exports
5% cash discount for upfront payment of full annual premium
Specific Shipment Policy (SSP)
Covering one shipment or One contract
Processing fee of Rs.1000/-
80% cover
Premium higher than standard premium rates
Upfront premium before issue of Policy
Commercial / Political risks and L/C comprehensive risks covered
Submission of Shipment Statement and realisation report later
Specific Buyer wise Policy
Covering One buyer / One Bank
Processing fee Rs.1000/-
Period of cover - One year
All shipments to buyer on Non LC terms or shipments under LC from bank covered
Quarterly/Annual premium payable upfront based on projected exports
80% cover
Monthly or quarterly shipment statements
5% No Claim Bonus reduction on renewal
Buyer Exposure Policy
Cover issued on exposure basis as opposed to turnover ( Exposure: Likely outstanding at any given point of time)
One time payment of premium on exposure
Single Premium rate based on country rating for Comprehensive risks/Political risks
Processing fee Rs.1000/- on application
Cover is up to Exposure or the Loss limit (Credit Limit)
Premium payable either quarterly or annually on the loss limit
No monthly statements
Annual statement of shipments at the end of Policy period on renewal
Coverage is 80%
Selective cover for each buyer at exporter’s discretion
Multi buyer exposure policy
Cover on exposure as opposed to turnover and cover for more than 1 buyer
Discretion to choose buyers for cover with exporter and shall be acceptable to ECGC
Processing Fee Rs.5000/- to accompany application
List of buyers to be given with proposal and any addition to be advised
Minimum 10% of projected turnover will be fixed as Aggregate Loss Limit (ALL) which will be the Maximum Liability
Exporter can opt for higher exposure than 10% of turnover
Cover for each buyer is 10% of ALL as Single Loss Limit (SLL)
Exporter to have access to ECGC website for checking defaulter buyer list.
Coverage is 80% and lower cover available with proportionate reduction of premium. Single premium rate irrespective of country grading
Upfront premium payable before issue or in quarterly instalments
5% No Claim Bonus reduction on renewal
Consignment (Stock holding Agent) Policy
Consignment exports covered under this exclusive cover for a period of 1 year
Premium on shipments to the agent payable on the turnover
Upfront premium quarterly / annually
Coverage 80%. Exporters holding Standard Policy will get 90% cover
One Agent / Multiple buyers
Cover on agent or on ultimate buyers as desired by exporter
Credit limits (Drawee wise limits) to be obtained on ultimate buyers
Discretionary Credit limit available upto 5% of turnover with max of Rs100 lakhs
Longer period of 360 days for realization of bills
Premium payable on the basis of country classification and tenor of 90/180/360 days. Extension upto 540 days permissible with additional premium
5% No Claim Bonus reduction on renewal
Consignment Exports (Global Entity) Policy
Coverage for selling goods through exporter’s own subsidiary or branch office during a period of 1 year
Premium on shipments to the GE payable on the turnover
Upfront premium quarterly / annually
Coverage 80%. Exporters holding Standard Policy will get 90% cover
One GE / Multiple buyers
Cover on GE or on ultimate buyers as desired by exporter
Commercial cover of Insolvency of GE only if Joint stock company and equity stake not exceeding 49%; Otherwise only Political risks cover
Credit limits (Drawee wise limits) to be obtained on ultimate buyers
Discretionary Credit limit available upto 5% of turnover with max of Rs100 lakhs
Longer period of 360 days for realization of bills
Premium payable on the basis of country classification and tenor of 90/180/360 days. Extension upto 540 days permissible with additional premium
5% No Claim Bonus reduction on renewal
MSME POLICY
Policy issued for small exporters with Export Turnover not exceeding Rs10 Lakhs and registered under MSME Act, 2006
Cover available upto Rs10 lakhs with annual premium of Rs 5,000 and a processing fee of Rs1,000
Cover available will be 90%
Maximum claim payable is Rs3 lakhs on any buyer
No requirement of monthly declaration of shipments
EXPORT FACTORING SERVICES
Factoring services involving finance, credit protection, collection under one roof
Finance against export receivables facilitated through a bank
Credit protection available after assessment of buyers
Receivables financed without recourse
80% prepayment against invoices and balance after 90 days from due date less charges, if payment not received
Details available on specific request at factoring[at]ecgc.in
Export Credit Insurance Covers to Banks
Covers for working capital granted by commercial banks to Exporters at Pre shipment and Post shipment stages
Covers available on exporter wise, bank branch wise and bank wise
Losses due to protracted default / Insolvency of exporters covered
Cover varies from 60% to 95% depending on the type of cover
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