Export Credit Guarantee Corporation of India Limited

Formerly known as the Export Credit Guarantee Corporation of India Ltd, ECGC Ltd. was set up in 1957 as a wholly owned company of the Government of India. It functions under the Ministry of Commerce & Industry and is managed by a diverse group of directors who are representatives of the Government, Reserve Bank of India, banking and insurance and exporting community.

The company is designed as an export promotion organization. It seeks to provide Indian exporters with adequate credit insurance cover.

Mission and Vision of ECGC Ltd

The vision of ECGC Ltd. is to excel in providing export credit insurance and trade related services.
The mission of ECGC is to support the Indian Export Industry by providing cost effective insurance and trade related services to meet the growing needs of Indian export market by optimal utilization of available resources.

Note: All information has been sourced from the official annual report and website of ECGC Ltd.

ECGC Ltd - Statistics

Mentioned below are the financial highlights of the company:

Particulars	2017-18	2016-17
Turnover (Gross Premium)	124041.71	126762.49
Profit Before Finance Charges, Tax, Depreciation/ Amortization (PBITDA)	13296.64	41085.42
Profit before Depreciation/ Amortization (PBTDA)	13296.64	41085.42
Less: Depreciation	318.11	336.00
Net Profit Before Taxation (PBT)	12978.53	40749.42
Provision for Taxation	5549.98	12535.01
Profit/(Loss) After Taxation (PAT)	7428.55	28214.41
Proposed Dividend	1500.00	7250.00
Dividend Tax	308.33	1475.93

ECGC Company Product and Services

The two primary products provided by ECGC Ltd are Export Credit Insurance for Exporter and Export Credit Insurance for Bank.

Export Credit Insurance for Exporter

A: ECIE Short Term - Turnover Based

Shipments Comprehensive Risks Policy - (SCR)

This is a Standard Whole Turnover Policy which covers all shipments.

Criteria	Description
Period of Policy	12 Months
Exclusions Permitted	- Exports to Associates - Shipments backed by Letters of Credit
Risks Covered	- Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk
Percentage of Cover	90%
Minimum Premium	Rs. 10,000/-
Highlights	- No Claim Bonus (NCB) of 5% subject to no claim, upto a maximum of 50%. - Discrepancy covers for L/C transactions subject to certain conditions. - Automatic cover for resale/reshipment up to 25% of Gross Invoice Value (GIV). - Availability of Discretionary Limits on buyers on conditions. - Cover for Merchanting trade with prior approval by an endorsement.
Commercial Risks (Covered)	For overseas buyers and on the L/c opening Bank: - Insolvency of the buyer/L/c Opening bank. - Failure of the buyer/L/c Opening bank 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.
Political Risks (Covered)	- Imposition of restrictions by the Government of the buyer’s country or any Government action. - 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. - Any other cause of loss occurring outside India not normally insured by general insurer and beyond the control of both the exporter and the buyer.

Small Exporters Policy - (SEP)

This is a standard policy for small exporters whose anticipated export turnover for the period of one year does not exceed Rs. 5 crores. The Maximum Liability under the SEP shall be fixed as per laid down guidelines, but shall not exceed Rs. 2 crores.

Criteria	Description
Period of Policy	12 Months
Minimum Premium	- Rs. 5000/-. - No claim bonus in the premium rate is granted every year at the rate of 5%.
Waiting Period (Claims)	2 months
Declaration of Shipments	Monthly
Declaration of Overdue payments	Exporters are required to submit monthly declarations of all payments remaining overdue by more than 60 days from the due date.

Specific Shipment Policy - (SSP)

This policy is for exporters who do not hold any of the Standard Policy/Whole Turnover Policy.

Criteria	Description
Period of Policy	Date of issue of the policy and upto the last date for shipment under the relevant contract.
Risks Covered	- Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk
Percentage of Cover	80%

Services Policy - (SRC)

This is a policy designed to cover payments due under the contracts where only services like technical or professional are to be rendered. There are four types of Services Policies:

Specific Services Contract (Comprehensive Risks) Policy - It is issued to provide cover for large contracts which have a relatively long period.
Specific Services Contract (Political Risks) Policy
Whole-turnover Services (Comprehensive Risks) Policy; and
Whole-turnover Services (Political Risks) Policy - It is issued to exporters who provide services to a set of principles on a repetitive basis and where the period of each contract is relatively short.

Export Turnover Policy - (ETP)

This is a Whole Turnover declaration based Policy wherein all shipments are required to be covered under the Policy. Turnover Policy is for the benefit of large exporters who contribute not less than Rs.20 lakhs per annum towards premium based on projection of the export turnover of the policy holder for a year.

Criteria	Description
Period of Policy	12 months
Exclusions Permitted	- Exports to Associates - Shipments backed by Letters of Credit
Risks Covered	- Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk
Percentage of Cover	90%
Highlights	- No Claim Bonus (NCB) of 5% subject to no claim, upto a maximum of 50%. - A turnover discount in the standard premium rate is offered subject to the total discount including NCB being not less than 20% to those exporters whose net annual premium payable exceeds Rs. 20 lakhs. - Additional discount in standard premium rate is offered if the actual premium exceeds beyond 10% of the projected premium. - Discrepancy cover for L/C transactions subject to certain conditions. - Automatic cover for resale/reshipment up to 25% of Gross Invoice Value (GIV). - Availability of Discretionary Limits on buyers on conditions. - Cover for Merchanting trade with prior approval by making necessary endorsement.

Exports (Specific Buyers) Policy (BWP)

This policy provides cover for shipments made to a particular buyer or on LC opening bank for a set of buyers.

Criteria	Description
Period of Policy	12 months
Risks Covered	- Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk
Percentage of Cover	80%
Highlights	- No Claim Bonus (NCB) of 5% subject to non-claim, upto a maximum of 50%. - Separate Policy per buyer.

Consignment Exports Policy (Stockholding Agent) - (CSA)

This is a policy designed to provide cover for shipments made by exporters on consignment basis to their agents.

Criteria	Description
Period of Policy	12 months
Risks Covered	- Commercial Risk on Stockholding Agent and/or ultimate buyers. - Political Risk
Percentage of Cover	90% for Standard Policyholder and 80% for others
Highlights	- Covers exports affected under consignment sale. - Extended period for realization up to 360 days. - Automatic cover on ultimate buyers up to discretionary limits subject to buyers being in a country placed in Open Cover category and not in the list of buyers on whom the Corporation has adverse information referred to as Buyer Specific Approval List (BSAL). - No Claim Bonus (NCB) of 5% subject to no claim, upto a maximum of 50%.

B: ECIE Short Term - Exposure Based

Buyer Exposure Policy (BEP)

This policy is designed to insure exporters having a large number of shipments to a particular buyer.

Criteria	Description
Period of Policy	12 months
Risks Covered	- Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk
Percentage of Cover	90% for Standard Policyholders and 80% for others
Highlights	- Protection is available upto the approved Loss Limit. - Premium is payable only on the Loss Limit approved on the buyer. - No Claim Bonus (NCB) of 5% subject to non-claim, upto a maximum of 50%. - Declaration procedure is waived off. - Separate Policy per buyer with an option to insure selective buyer.

IT-Enabled Services Policy-Single Customer (SITES)

This is a special policy given in respect of contracts for rendering service during a defined period with billing on the basis of service rendered during a period say, a week, a month or a quarter.

Criteria	Description
Period of Policy	12 months
Risks Covered	- Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk
Percentage of Cover	80%
Highlights	- Protection is available upto the approved Loss Limit. - Premium is payable only on the Loss Limit approved on the buyer. - No Claim Bonus (NCB) of 5% subject to non-claim, upto a maximum of 50%. - Declaration procedure is waived off. - Separate Policy per buyer with an option to insure selective buyer.

Micro Exporter Policy - (MEP)

This is an exposure based policy designed specifically for the SME sector.

Criteria

Description

Risks Covered

Commercial Risks:

- Insolvency of the buyer
- Failure of the buyer to make the payment due within a specified period
- Buyer’s failure to accept the goods
- Insolvency of the L/c Opening bank
- Failure of the L/C opening bank to make the payment due within a specified period

Political Risks:

- Imposition of restrictions by the Government of the buyer’s country or any Government action.
- 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.
- Cause of loss occurring outside India not normally insured by general insurer.

Features

- Policy period: 12 months
- Processing Fees: Rs.1000
- Minimum Premium: Rs. 25000
- Maximum Loss Limit: Rs.15 lacs
- Single Loss Limit: Rs. 5 lacs
- Report of overdue: more than 60 days from the due date
- Waiting period: 2 months from the due date or extended Due date
- Percentage of cover: 90%

Software Project Policy

This policy provides protection to exporters of software and related services where the payments will be received in foreign exchange.

Criteria	Description
Period of Policy	Depending on the contract
Risks Covered	- Commercial Risk / Buyer Risk - Political Risk - L/C Opening Bank Risk
Percentage of Cover	80%
Highlights	Protection is available upto the approved Loss Limit. - Premium is payable only on the Loss Limit approved on the buyer. - Separate Policy per buyer with an option to insure selective buyer.

C: ECIE - Medium & Long Term

Construction Works Policy - (CWP)

This policy provides cover to an Indian contractor who executes a civil construction job abroad.

Criteria	Description
Loss Coverage	85%
Risk Covered	- Insolvency of the employer (when he is a non-Government entity). - Failure of the employer to pay the amounts that become payable to the contractor in terms of the contract, including any amount payable under an arbitration award. - Restrictions on transfer of payments from the employer’s country to India after the employer has made the payments in local currency. - Failure of the contractor to receive any sum due and payable under the contract by reason of war, civil war, rebellion, etc. - Failure of the contractor to receive any sum that is payable to him on termination or frustration of the contract. - Imposition of restrictions on import of goods or materials (not being the contractor’s plant or equipment) or cancellation of authority to import such goods or cancellation of export license in India. - Interruption or diversion of voyage outside India, resulting in his incurring in respect of goods or materials exported from India.
Highlights	- Cover can be for political or comprehensive risks/full insurable value including retention portion/third country exports. - Premium can be paid in installments. - Reduced loss coverage with proportionate reduction in premium. - Reduced premium for projects funded by multilateral agencies.

Specific Policy for Supply Contract (SITES)

This is a whole turnover policy designed to provide continuing insurance for the regular flow of an exporter’s shipments for which credit period does not exceed 180 days.

Criteria	Description
Loss Coverage	90%
Risk Covered	- Insolvency of buyer - Protracted default of buyer - Buyer’s failure to accept goods - War, Civil War, Revolutions in buyer’s country - New Import restrictions - Transfer delays - Insolvency - Default
Highlights	- Add on pre-shipment risk cover. - Provides cover for full insurable value including retention portion and third country exports. - Reduced premium for projects funded by multilateral agencies.

Specific Shipment Policy - (SSP)

This is a specific policy which provides protection against non-receipt of payments due to commercial and /or political risks.

Criteria	Description
Loss Coverage	90%
Risk Covered	- Insolvency of buyer - Protracted default of buyer - Buyer’s failure to accept goods - War, Civil War, Revolutions in buyer’s country - New Import restrictions - Transfer delays - Insolvency - Default
Highlights	- Add on pre-shipment risk cover. - Provides cover for full insurable value including retention portion and third country exports. - Reduced premium for projects funded by multilateral agencies.

Specific Services Policy - (SRC): Same as Services Policy

Letter of Credit Confirmation Cover

Also known as a transfer cover, it is issued at the option of the bank to cover either political risks alone, or both political and commercial risks.

Loss due to Political Risk - 90%
Loss due to Commercial Risk - 75%
Rate of Premium - Depends on the country of export and the tenor of L/C

Export Credit Insurance for Bank

A: ECIB - Short Term - Pre-Shipment (PC)

Individual Packing Credit - (INPC)

Criteria	Description
Eligibility	- Any bank or financial institution authorized to deal in foreign exchange/currency. - Exporter clients who has been classified as a standard asset and whose CR is acceptable to ECGC.
Period Of Cover	12 months
Eligible Advances	All packing credit advances as per RBI guidelines.
Protection Offered	Against losses that may be incurred in extending packing credit advances due to protracted default or insolvency of the exporter-client.
Percentage Of Cover	66-2/3%
Premium	12 paise per Rs.100 p.m. on the highest amount outstanding on any day during the month.
Maximum Liability	66-2/3% of the Packing Credit Limit sanctioned and approved by ECGC.

Whole Turnover Packing Credit - (WTPC)

Criteria	Description
Eligibility	- Any bank or a financial institution authorized to deal in foreign exchange/currency. - Exporter clients who has been classified as a standard asset and whose CR is acceptable to ECGC.
Period Of Cover	12 months
Eligible Advances	All packing credit advances as per RBI guidelines.
Protection Offered	Against losses that may be incurred in extending packing credit advances due to protracted default or insolvency of the exporter-client.
Percentage Of Cover	- For banks taking the cover for the first time it is 75% up to a certain limit and 65% beyond the said limit. - For others varies from 55% to 75% depending on claim premium ratio of the bank. - For Small Scale Exporters (SSE)/ Small Scale Industrial Units (SSI), it is 90%.
Premium	- For a fresh cover it is 9 paise. - For others, varies from 6 to 13.5 paise per Rs. 100 p.m. depending on claim premium ratio.
Maximum Liability	Overall limit up to which claims can be paid by the Corporation in respect of advances granted in any ECIB year and will be determined on the basis of aggregate outstanding.

Branch Wise Packing Credit - (BIPC): Same as Individual Packing Credit - (INPC) B: ECIB - Short Term - Post-Shipment

Individual Post Shipment - (INPS)

Criteria	Description
Eligibility	Any bank or financial institution who is an authorized dealer in foreign exchange/currency and provides post-shipment finance to an exporter.
Risks Covered	Protracted default or insolvency of the exporter-client.
Period Of Cover	12 months
Percentage Of Cover	75%
Premium	0.09% payable on the highest amount outstanding on any day during the month.
Maximum Liability	75% of the Post-shipment Limits of the account.

ECIB - INPS (With Exclusion)

Criteria	Description
Eligibility	Any bank or financial institution who is an authorized dealer in foreign exchange/currency.
Eligible Advances	All post-shipment advances given through purchase, negotiation or discount of export bills or advances against bills sent on collection.
Protection Offered	Against losses that may be incurred in extending post-shipment advances due to protracted default or insolvency of the exporter-client.
Percentage Of Cover	- 75% for advances against bills drawn on buyers other than associates. - 60% for advances against bills drawn on associates provided relevant shipments are covered for comprehensive risks.
Premium	0.09% payable on the highest amount outstanding on any day during the month.
Maximum Liability	75% of the Post-shipment Limits of the account.

ECIB - INPS (Without Any Exclusion)

Criteria	Description
Eligibility	Any bank or financial institution who is an authorized dealer in foreign exchange/currency.
Eligible Advances	All post-shipment advances given through purchase, negotiation or discount of export bills or advances against bills sent on collection.
Protection Offered	Against losses that may be incurred in extending post-shipment advances due to protracted default or insolvency of the exporter-client.
Percentage Of Cover	- 75% for advances against bills drawn on buyers other than associates. - 60% for advances against bills drawn on associates provided relevant shipments are covered for comprehensive risks.
Premium	6 paise per Rs. 100 p.m. payable on the highest amount outstanding on any day during the month.
Maximum Liability	75% of the Post-shipment Limits of the account.

ECIB - INPS (Not Holding Standard Policy)

Criteria	Description
Eligibility	Any bank or financial institution who is an authorized dealer in foreign exchange/currency.
Period of Cover	12 months
Eligible Advances	Post-shipment advances against L/C bills. Post-shipment advances except bills drawn on associates.
Protection Offered	Against losses that may be incurred in extending post-shipment advances due to protracted default or insolvency of the exporter-client.
Percentage Of Cover	75%
Premium	- 9 paise per Rs. 100 p.m. in respect of post-shipment advances against L/C bills. - 13 paise per Rs.100 in respect of post-shipment advances except bills drawn on associates. The following are under Eligible Advances above payable on the highest amount outstanding on any day during the month.
Maximum Liability	60% of the Post-shipment Limits of the account.

Whole Turnover Post Shipment - (WTPS)

Criteria	Description
Eligibility	Any bank or financial institution who is an authorized dealer in foreign exchange/currency.
Period of Cover	12 months
Eligible Advances	- Post-shipment advances granted to exporters by way of purchase/discount/negotiation of export documents. - Advances granted against export bills sent on collection basis, as per RBI guidelines.
Protection Offered	- Against losses that may be incurred in extending post-shipment advances due to protracted default. - Insolvency of the exporter-client.
Percentage Of Cover	- 90% to 95% in respect of exporters who are policyholders of ECGC. - 50% to 75% for non-policyholders. - For bills drawn on Associates of Policyholders coverage is 60% and of non-policyholders it is 50%.
Premium	- 4.5 paise to 6.00 paise per Rs. 100 p.m. if advances against L/C bills are included for cover. - 5.5 paise to 7.00 paise depending upon the Claim Premium Ratio for the last 5 years.
Maximum Liability	The overall limit is fixed for the bank up to which claims can be paid by the corporation in respect of advances granted during the ECIB-WTPS year.

Export Finance (EF)

Criteria	Description
Eligibility	Any bank authorized to deal in foreign exchange/currency on behalf of its exporter-client who has been classified as a standard asset and whose credit rating is acceptable to ECGC.
Period of Cover	12 months
Eligible Advances	Advances against incentives such as cash assistance, duty drawback, etc., receivable at post-shipment stage.
Protection Offered	Against losses incurred in extending post-shipment advances against incentives due to protracted default or insolvency of the exporter-client.
Percentage Of Cover	75%
Premium	6 paise per Rs.100 p.m. on the highest amount outstanding on any day during the month.
Maximum Liability	75% of the post-shipment limit.

C: ECIB - Short Term - Cover against Bank Guarantee

Export Credit Insurance for Banks - Surety Cover (ECIB-SC) This is issued to protect the bank against losses that it may suffer on account of guarantees given by it on behalf of exporters.

Criteria	Description
Eligibility	For banks whose exporter clients have Standard Asset Classification with an acceptable credit rating weightage/marks/score of 50% and above.
Eligible Bank Guarantees for Cover	- Bid Bond Guarantee: This guarantee is issued by a bank on behalf of its exporter clients who desire to bid for a foreign tender. - Performance Guarantee: If the exporter wins a contract in the global tender, they have to furnish a bank guarantee for their due performance. - Letters of Credit opened for purchase or import of raw materials in respect of export transactions. - Bank Guarantees furnished by exporters to DGFT, Customs, Central Excise or Sales Tax Authorities. - Bank Guarantees furnished in support of the export obligations by the exporters to Export Promotion Councils, Commodity Boards, the State Trading Corporation of India, the MMTC or Recognized Export Houses.
Period of Cover	Same as the period of the guarantee being covered. However, where the period of the guarantee is more than one year, cover shall be issued for a period not exceeding 12 months from the date of commencement of ECIB (SC) cover, subject to further extension on completion of 12 months.
Processing Fee	Rs. 1000/- per application
Risk Covered	Against insolvency and/or protracted default of the exporter to repay his debt to the bank which is covered under the ECIB (SC).
Premium	- For Credit Rating Score of 50% and upto 70% - 12 Paise. - For Credit Rating Score of above 70% and upto 90% - 11 Paise. - For Credit Rating Score of above 90% - 10 Paise.
Maximum Liability	75% of the Guarantee value or 75% of the insured debt, whichever is lower.

Advance Payment - cum - Performance

Criteria	Description
Eligibility	For banks whose exporter clients have Standard Asset Classification with an acceptable credit rating weightage/marks/score of 50% and above.
Eligible Bank Guarantees for Cover	This contract is entered into by the exporter for supply of products abroad, which involves an advance payment equal to a certain percent of total value of the contract.
Period of Cover	Same as the period of the guarantee being covered. However, where the period of the guarantee is more than one year, cover shall be issued for a period not exceeding 12 months from the date of commencement of ECIB (SC-AP/APP) cover, subject to further extension on completion of 12 months.
Processing Fee	Rs. 1000/- per application
Risk Covered	Against insolvency and/or protracted default of the exporter to repay his debt to the bank which is covered under the ECIB (SC).
Premium	- For Credit Rating Score of 50% and upto 70% - 12 Paise. - For Credit Rating Score of above 70% and upto 90% - 11 Paise. - For Credit Rating Score of above 90% - 10 Paise.
Maximum Liability	75% of the Guarantee value or 75% of the insured debt, whichever is lower.

D: ECIB - Medium & Long Term

Export Performance (EP)

This cover provides protection to the banks against losses that it may suffer due to insolvency and/ or protracted default of the borrower.

Criteria	Description
Risks Covered	- Insolvency of Borrower - Protracted Default of Borrower
Loss Coverage	75% or 90%
Period of Cover	As per the bank guarantee
Premium Rate	0.70% p.a. for 75% covers 0.84% p.a. for 90% covers

Export Finance [Overseas Lending] (EF-OL)

This plan helps the bank protect itself from the risk of non-payment by the contractor in case of a foreign currency loan.

Premium Rates

0.90% per annum for 75% cover
1.08% per annum for 90% cover

ECIB-Cash Flow Deficit Financing

This is an Export Credit Insurance Packing Credit Plan which provides financial protection to the banks against losses that bank may suffer due to insolvency and default of the borrower.

Criteria	Description
Risks Covered	- Insolvency of Borrower - Protracted Default of Borrower
Loss Coverage	75%
Period of Cover	12 months
Premium Rate	0.12% p.m. on Highest Amount Outstanding

Special Schemes

Factoring

The Export Factoring Facility is designed specifically for Micro Small and Medium Enterprises. Export Factoring is the packaging of financial products consisting of working capital financing, credit risk financing, and maintenance of sales ledger and collection of export receivables from the buyer located in an overseas country.

Criteria

Description

Eligibility

1. MSME, as defined in the MSMED Act, 2006.
2. 3 years’ experience in exports with satisfactory business and financial performance.
3. Buyers from A1 and A2 countries.
4. Export on open account terms.
5. Assignment and accounts receivables.
6. Commodities other than gold, diamond, gems, jewellery, iron ore, granite and software.

Benefits

1. Finance against export receivable.
2. Large working capital for growing companies.
3. Without recourse finance on undisputed export bills.
4. 100% credit risk protection on buyer.
5. Maintenance of sales ledger for transactions with a specific buyer.
6. Easy accessibility of finance for improvement in cash flow and opportunity to make use of supplier discounts.
7. Increase sales in the overseas market by extending competitive credit terms.
8. Collection of export proceeds and recovery of unpaid bills.
9. Lower cost compared to L/C transactions.

Buyer’s Credit Cover

This is a credit extended by a bank in India to an overseas buyer, enabling the buyer to pay for machinery and equipment that they are importing from India for a specific project.

Criteria	Description
Risks Covered	Political: - Occurrence of war between the country of the overseas party and India. - Occurrence of war, hostilities, civil war, revolution, rebellion, insurrection or other disturbances in the country of overseas party. - The operation of law or of an order, decree or regulation having the force of law in circumstances outside the control of the lender and/or the overseas party, prevents, restricts or controls, the transfer of the sums due to the lender by the overseas party under the Financial Agreement. Commercial: - The risk of protracted default of the borrower to pay the amounts due under the loan agreement. - Insolvency of the borrower.
Loss Coverage	90%
Period of Cover	As per the agreement.

Lines of Credit Cover

This is a credit extended by a bank in India to an overseas bank, institution or government for the purpose of facilitating import of a variety of listed goods from India into the overseas country.

Criteria	Description
Risks Covered	Political: - Occurrence of war between the country of the overseas party and India. - Occurrence of war, hostilities, civil war, revolution, rebellion, insurrection or other disturbances in the country of overseas party. - The operation of law or of an order, decree or regulation having the force of law in circumstances outside the control of the lender and/or the overseas party, prevents, restricts or controls, the transfer of the sums due to the lender by the overseas party under the Financial Agreement. Commercial: - The risk of protracted default of the borrower to pay the amounts due under the loan agreement. - Insolvency of the borrower.
Loss Coverage	90%
Period of Cover	As per the agreement.

Overseas Investment Insurance

This is a scheme to provide protection for Indian investments abroad. Investments made in the form of equity capital, united loan for the purpose of setting up or expansion of overseas projects are entitled to cover. The investment can be in the form of cash or through export of goods/services.

Criteria	Description
Risks Covered	Political: - War, Civil War, Revolutions in buyer’s country - Expropriation - Restrictions on remittances
Loss Coverage	90%
Period of Cover	15 years for projects involving a long construction period, expandable up to 20 years with reduced insured amount

Customer Specific Covers

Customer Specific Policies provide cover to large exporters on a selective basis on the merits respective of requests for such cover.

Features of Customer Specific Covers

Policies can be combined with more than one standard type (Off the shelf) of policies
The policy is issued with the base cover of an appropriate standard policy with added feature from other standard policy.
The anticipated annual premium should be more than ₹10 lakhs.

Awards & Recognitions of ECGC Ltd.

ECGC Ltd. has been bestowed with the following awards and recognitions:

First Prize for Excellence Implementation of Official Language - “Shield for Excellent Official Language Implementation” by Ministry of Commerce during 2013-14.
First Prize - Indira Gandhi Rajbhasha Award” in Region “B” for excellent implementation of Rajbhasha.
First Prize for Excellent Implementation of Official Language for Year 2012-13 by “Aashirwad Sansthan”.
Indira Gandhi Rajbhasha Puraskar 2011-12 for excellent implementation of Official Language Policy (1st Position) amongst the offices situated in the ‘B’ region.

FAQs on ECGC Ltd

What is Buyer’s Credit Scheme?

A Buyer’s Credit Scheme finances and facilitates project exports from India, especially in the infrastructure sector. It comes under the National Export Insurance Account.

What is the role of ECGC?

The ECGC issues credit covers on behalf of NEIA Trust. Also, it receives, examines, processes and submits proposals to COD for approval.

Can a BP (ST) policy be issued to cover exports to more than one buyer?

No, a separate policy has to be obtained for every buyer.

When can the exporter file a claim under BP (ST)?

An exporter has to file a claim under BP (ST) after the loss is ascertained, but within 1 year from the due date of payment for the shipment claim.

What is the percentage of cover provided under Consignment Exports Policy?

The percentage of cover provided under Consignment Exports Policy is 90%.

What is the difference between premium paid on projected turnover and premium payable on actual turnover?

When the premium payable on the basis of the actual turnover is less than the premium paid on the basis of the projected turnover, the excess amount paid is carried forward to the next policy period.

What is the duration of policy and percentage of cover under MBEP?

The duration of policy and percentage of cover under MBEP is one year and 80%.

What is the cover available for L/c opening banks under the SBEP Policy?

The cover is available for banks with the world rank up to Rs. 25000 as per the latest Bankers Almanac.

What is the percentage of cover provided by ECGC?

Up to 90% is the percentage of cover provided by ECGC (Commercial or Political Risk).

How is the amount recovered from foreign buyer shared under ECGC?

The net of recovery expenses is shared with ECGC in the ratio in which the loss was originally shared.

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