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EXPORT CREDIT AND
GUARANTEE CORPORATION
OF INDIA LTD.
(ECGC)
ECGC
 Established in 1957 to cover risks of exporting on credit.
 Under administrative control of Ministry of Commerce &
Industry, Dept. of Commerce, GoI.
 Credit risk insurance covers to exporters against loss in
export of goods and services
 Guarantees to banks and financial institutions to enable
exporters to obtain better facilities from them
 Overseas investment insurance to Indian companies
investing in joint ventures abroad in the form of equity or
loan.
ECGC’S SERVICES TO EXPORTERS
 Insurance protection to exporters against payment
risks
 Guidance in export-related activities
 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
CLASSES OF POLICIES ON OFFER
Credit Insurance Policies
Export Insurance Cover to Banks
Full Fledged Factoring
Special Schemes
TYPES OF POLICIES
CREDIT INSURANCE POLICIES
 SCR or Standard Policy
 Small Exporters Policy
 Specific Shipment Policy – Short Term (SSP-
STI)
 Export (Specific Buyers)Policy
 Export Turnover Policy
 Buyer Exposure Policy
 Consignment Export Policy (stockholding agent)

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CREDIT INSURANCE POLICIES
 Consignment Export Policy (global entity)
 Services Policies
 SoftwareExport Policy
 IT-enabled Services (specific customer) Policies
 ConstructionWorks Policy
 Specific Policyfor SupplyContracts
 InsuranceCover for Buyer’s Credit & Line of
Credit
SPECIAL SCHEMES
Exchange Fluctuations Risk Cover
Transfer Guarantee
Overseas Investment Guarantee
EXPORT INSURANCE COVER TO BANKS
 ECIB – PC
 ECIB – EPF
 ECIB – PS
 ECIB – EF
 ECIB – EP
 Export Finance (Overseas Lending) Guarantee
STANDARD POLICY
SCR OR STANDARD POLICY
 Provides cover only for the post-shipment risks.
 Exports on short-term credit, i.e. credit not
exceeding 180 days.
 Covers both commercial and political risks from
the date of shipment.
 Issued to exporters whose anticipated export
turnover for the next 12 months is more than
Rs.50 lacs.
STANDARD POLICY:RISKS COVERED
 Commercial Risks:
Insolvency of the buyer.
Failure of the buyer to make the payment
due within a specified period, normally four
months from the due date.
Buyer's failure to accept the goods, subject
to certain conditions.
 Only if a credit limit is approved by ECGC on
each buyer to whom shipments are made on
credit terms.

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STANDARD POLICY:RISKS COVERED
 PoliticalRisks
 Statutory restriction in the buyer's country or any Govt.
action, blocking or delaying transfer of payment made by
the buyer.
 War, civil war, revolution or civil disturbances in the
buyer's country.
 New import restrictions or cancellation of a valid import
license in the buyer's country.
 Interruption or diversion of voyage outside India resulting
in payment of additional freight or insurance charges
which can not be recovered from the buyer.
 Any other cause of loss occurring outside India not
normally insured by general insurers, and beyond the
control of both the exporter and the buyer.
STD. POL.: REQUIREMENTS
 To cover all shipments made on credit terms
during the period of 24 months after the issue of
the policy.
 Exporter must offer for cover each and every
shipment in the next 24 months on DP, DA or open
delivery terms to all buyers (other than to his own
associates).
 May exclude shipments made against advance
payment or irrevocable LCs confirmed by banks in
India
STD. POL.: REQUIREMENTS (LC)
 Option: obtain cover for either political risks only or
 For comprehensive risks, i.e., all political risks and the
risk of insolvency or default of the bank opening the
irrevocable Letter of Credit.
 provides indemnity to the exporter to the extent of 25% of the
gross invoice value if the LC opening bank refuses payment on
the ground of discrepancies in LC, which are not clearly
attributable to the exporter.
 Cover provided only if the exporter agrees to get all the
shipments made against irrevocable LC covered under
the policy.
 Cover will not be available for selected transactions
STD. POL: RISKS NOT COVERED
 Commercial disputes including quality disputes
raised by the buyer, unless the exporter obtains
a decree from a competent court of law in the
buyer's country in his favour.
 Causes inherent in the nature of the goods.
 Buyer's failure to obtain necessary import or
exchange authorization from authorities in his
country.
STD. POL.: RISKS NOT COVERED
 Insolvency or default of any agent of the
exporter or of the collecting bank.
 Loss or damage to goods which can be covered
by general insurers.
 Exchange rate fluctuation.
 Failure or negligence on the part of the
exporter to fulfil the terms of the export
contract.
SMALL AND MEDIUM
EXPORTERS POLICY

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SMALL AND MEDIUM EXPORTERS POLICY
 For exporters engaged in manufacturing
activities having invested in plant and
machinery or engaged in export of services
having invested in equipment as per MSMED
Act, 2006
 Not meant for the exporters carrying out only
trade activities.
FEATURES AT A GLANCE
Particulars Details
1. Policy period 12 months
2. Processing Fees Rs.1000
3. Credit limit fees No
4. Discretionary Limit No
5. Declarations No
6. Premium Rs.5,000
7. Maximum Loss Limit Rs.10.0 lacs
8. Single Loss Limit Rs. 3.0 lacs
9. Report of overdue 60 days from the due date
10. Waiting period Two months from the due date
11. Percentage of cover 90%
SPECIAL SCHEMES
Exchange Fluctuation Risk Cover
EXCHANGEFLUCTUATION RISK COVER
 Protection to exporters of
 capital goods,
 civil engineering contractors and
 consultants
who have often to receive payments over a period of
years for their exports, construction works or
services.
 Since forward exchange market does not
provide cover for such deferred payments.
EXCHANGEFLUCTUATION RISK COVER
 Availablefor payments scheduled over a period of
12 months or more,
 Up to a maximum of 15 years.
 Cover can be obtained from the date of bidding
right up to the final instalment.
 At the stage of bidding, an exporter/contractor can
obtain Exchange Fluctuation Risk (Bid) Cover.
 Provided initially for a period of twelve months,
extended if necessary
EXCHANGEFLUCTUATION RISK COVER
 If the bid is successful, the exporter/contractor is
required to obtain Exchange Fluctuation (Contract)
cover for all payments due under the contract.
 If the bid is unsuccessful 75 percent of the
premium paid by the exporter/contractor is
refunded to him.
 Contracts coming under buyer's credit and line of
credit are also eligible for cover under the
schemes.

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CREDIT INSURANCE POLICIES
SpecificShipment Policy - Short Term(SSP-ST)
SPECIFIC SHIPMENT POLICY - SHORT TERM
(SSP-ST)
 Against commercial and political risks involved
in export of goods on short-term credit not
exceeding 180 days.
 These policies can be availed of by
 exporters who do not hold SCR Policy and
 by exporters having SCR Policy,
in respect of shipments permitted to be excluded
from the perview of the SCR Policy.
 Max. 80% of the gross invoice value of the
shipments covered.
SPECIFIC SHIPMENT POLICY - SHORT TERM
(SSP-ST)
 For either a shipment or a few shipments to a
buyer under a contract.
 Exporter can opt to cover one or more
shipments under a particular contract.
 He can also choose to cover shipments made
during a given period within the validity of the
contract.
PERIOD OF VALIDITY
 If shipments to be made during a particular period, the
policy would be issued for that period.
 If policy is issued to cover a shipment already made
before the proposal is submitted, the policy would be
valid only for that shipment.
 If the proposal is to cover the shipment already made
under a contract and to cover further shipments to be
made under the same contract, the policy shall be
issued for the period from the date of the shipment
already made up to the period of contract or the period
as desired by the exporter, whichever is earlier.
DIFFERENT TYPES OF SSP (ST) :
 Specific Shipments (commercial and
political risks) Policy - short-term.
 Specific Shipments (political risks) Policy -
short-term.
 Specific Shipments (insolvency & default
of L/C opening bank and political risks)
Policy - short-term.
RISKS COVERED UNDER SSP (ST)
Commercial risks:
Insolvency of the buyer.
Failure of the buyer to make the
payment due within a specified period,
normally four months from the due
date.
Buyer's failure to accept the goods
(subject to certain conditions).

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RISKS COVERED UNDER SSP (ST)
Politicalrisks: [For all the SSP-ST policies]
 Restrictions by the Govt. of the buyer's country or
any statutory action which may block or delay the
transfer of payment made by the buyer;
 War, civil war, revolution or civil disturbances in the
buyer's country;
 New import restrictions or cancellation of a valid
import license;
 Interruption of voyage outside India resulting in
payment of additional freight or insurance charges
which cannot be recovered from the buyer.
RISKS COVERED UNDER SSP (ST)
Insolvency & defaultof LC openingbank:
 Insolvency of the L/C opening bank;
 Failure of the LC opening bank to make
the payment due within a specified
period, normally four months, from the
due date.
RISKS NOT COVEREDUNDER SSP (ST)
 Commercial disputes including quality disputes
raised by the buyer, unless the exporter obtains
a decree from a competent court of law in the
buyer's country in his favour;
 Causes inherent in the nature of goods;
 Buyer's failure to obtain necessary import or
exchange authorization from authorities in his
country;
RISKS NOT COVEREDUNDER SSP (ST)
 Insolvency or default of any agent of the
exporter or of the collecting bank;
 Loss or damage to goods;
 Exchange rate fluctuation;
 Failure of the exporter to fulfil the terms of the
export contract or negligence on his part;
 Non-payment under a letter of credit due to any
discrepancy pointed out by the L/C opening
bank.
OBLIGATIONSOF EXPORTER HOLDING SSP (ST)
 Submission of statement of shipments made
 Submission of statement of overdue
 Intimationof event affectingthe risk
 Actionfor minimisingloss
 No extension of due date (subject to ECGC terms)
 Action to safeguard goods; resell them to alternate
buyer
 bring the goods back to India, with the prior
approval of ECGC (and blacklist buyer).
EXPORT (SPECIFIC BUYERS) POLICY
Credit Insurance Policies

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EXPORT (SPECIFIC BUYERS) POLICY
 Buyer-wise Policies - Short Term (BP-ST)
 Provide cover against commercial and political risks on
export on short-term credit to a particular buyer.
 All shipments to the buyer in respect of whom the policy
is issued will have to be covered (with a provision to
permit exclusion of shipments under LC).
 These policies can be availed of by
 exporters who do not hold SCR Policy and
 by exporters having SCR Policy,
in case all the shipments to the buyer in question have been
permitted to be excluded from the purview of the SCR Policy.
EXPORT (SPECIFIC BUYERS) POLICY
The different types of BP (ST)?
 Buyer-wise (commercial and political risks)
Policy - short-term
 Buyer-wise (political risks) Policy - short-term.
 Buyer-wise (insolvency & default of L/C opening
bank and political risks) Policy - short-term.
EXPORT (SPECIFIC BUYERS) POLICY
Risks covered under BP (ST)
 Insolvency of the buyer
 Failure of the buyer to make the payment due
within a specified period, normally four
 months from the due date.
 Buyer's failure to accept the goods (subject to
certain conditions).
EXPORT (SPECIFIC BUYERS) POLICY
Political risks:
 Imposition of restrictions by the Government of the
buyer's country or any Government action which may
block or delay the transfer of payment made by the
buyer;
 War, civil war, revolution or civil disturbances in the
buyer's country;
 New import restrictions or cancellation of a valid import
license;
 Interruption of voyage outside India resulting in payment
of additional freight or insurance charges which cannot
be recovered from the buyer;
EXPORT (SPECIFIC BUYERS) POLICY
Insolvency& default of LC opening bank
 Insolvency of the L/C opening bank;
 Failure of the LC opening bank to make the
payment due within a specified period,
normally four months from the due date;
EXPORT (SPECIFIC BUYERS) POLICY
Risksnot covered under BP (ST)
 Commercial disputes including quality disputes raised
by the buyer, unless the exporter obtains a decree from
a competent court of law in the buyer's country in his
favour;
 Causes inherent in the nature of goods;
 Buyer's failure to obtain necessary import or exchange
authorization from authorities in his country;
 Loss or damage to goods;
 Exchange rate fluctuation;
 Failure of the exporter to fulfil the terms of the export
contract or negligence on his part.

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BUYER EXPOSURE POLICIES
Credit Insurance Policies
BUYER EXPOSURE POLICIES
 Two types of exposure policies are offered,
viz,
Exposure (Single Buyer) Policy – for covering
the risks on a specified buyer and
Exposure (Multi Buyer) Policy – for covering
the risks on all buyers.
EXPOSURE (SINGLE BUYER) POLICY
 Cover provided on a selected buyer.
 Against commercial and political risks attached to
the buyer
 For both non-LC and LC transactions.
 A separate Buyer Exposure Policy for each buyer
covering all the exports to be made to the buyer
during a period of twelve months.
 If covered for commercial and political risks,
failure of the LC opening bank in respect of
exports against LC will also be covered,
SPECIALFEATURESOF EXPOSURE (MULTI–
BUYER)POLICY
 Cover for an Aggregate Loss Limit (ALL) on all
buyers
 Issued for a period of one year
 Available for exports to the buyers in countries
listed under open cover category
 Prior application and approval required
End of overview
of
ECGC’s services to exporters.