2. Export Credit Guarantee Corporation of India
Limited, was established in the year 1957 by
the Government of India to strengthen the
export promotion drive by covering the risk
of exporting on credit.
3. To support the Indian Export Industry by
providing cost-effective insurance and trade-
related services to meet the growing needs of
the Indian export market through the optimal
utilization of available resources.
4. 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. as on 31st
March 08
IRDA registered Insurance company classified
under General Insurance-Specialised Institution
5. 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 to obtain
better facilities from them
Provides Overseas Investment Insurance to
Indian companies investing in joint ventures
abroad in the form of equity or loan
6. 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
Provides information on credit-worthiness of
overseas buyers
8. 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
9. Standard Policy
Specific Shipment Policy
Export Turnover policy
Specific buyer wise policy
Consignment export policy
Customer specific policy
10. Shipments (Comprehensive Risks) Policy,
commonly known as the Standard Policy, is
the one ideally suited to cover risks in respect
of goods exported on short-term credit, i.e.
credit not exceeding 180 days.
This policy covers both commercial and
political risks from the date of shipment.
11. ECGC normally pays 90% of the loss
Exporter has to bear remaining 10%
12. Specific Shipment Policies - provide cover to
Indian exporters against commercial and
political risks involved in export of goods on
short-term credit not exceeding 180 days.
It is issued for a particular shipment sent to a
particular buyer.
14. Where Indian companies conclude contracts
with foreign principals for providing them
with technical or professional services,
payments due under the contracts are open
to risks similar to those under supply
contracts. In order to give a measure of
protection to such exporters of services,
ECGC has introduced the Services Policy
15. The Transfer Guarantee seeks to safeguard
banks in India against losses arising out of
such risks
The confirming bank will suffer a loss if the
foreign bank fails to reimburse it with the
amount paid to the exporter.
16. By ECGC
Up to 90% if Loss due to political risks
Up to 75% if loss due to commercial risks
By Bank
Remaining % in both risks
17. It is Given by ECGC for any investment made
by way of equity capital or loan for the
purpose of setting up or expansion of
overseas projects.
The investment may be either in cash or in
the form of export of Indian capital goods
and services.
