What Is ECGC

What is ECGC?
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.
Being essentially an export promotion organization, it functions under the
administrative control of the Ministry of Commerce & Industry, Department
of Commerce, Government of India. It is managed by a Board of Directors
comprising representatives of the Government, Reserve Bank of India,
banking, insurance and exporting community.
ECGC is the fifth largest credit insurer of the world in terms of coverage of
national exports. The present paid-up capital of the company is Rs.800
crores and authorized capital Rs.1000 crores.
What does ECGC do?

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
How does ECGC help exporters?

ECGC
 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
Need for export credit insurance

Payments for exports are open to risks even at the best of times. The risks
have assumed large proportions today due to the far-reaching political and
economic changes that are sweeping the world. An outbreak of war or civil
war may block or delay payment for goods exported. A coup or an
insurrection may also bring about the same result. Economic difficulties or
balance of payment problems may lead a country to impose restrictions on
either import of certain goods or on transfer of payments for goods
imported. In addition, the exporters have to face commercial risks of
insolvency or protracted default of buyers. The commercial risks of a foreign
buyer going bankrupt or losing his capacity to pay are aggravated due to the
political and economic uncertainties. Export credit insurance is designed to
protect exporters from the consequences of the payment risks, both political
and commercial, and to enable them to expand their overseas business
without fear of loss.
 Established 30 July 1957

 Mandated to promote exports
 50 Years of committed service
 5th Largest Credit insurer of the world
 Admin control – Min of Commerce & Industry
 Authorised capital Rs.1000cr
 Paidup capital Rs. 900cr
 Registered office MUMBAI, 5 ROs, 52 Branches
 WAN connectivity,
 Member of BERNE union (Intl Union of Credit Investment Insurers) 53 members from 42
Countries
 Alliance with Coface(France), D&B
 Registered with IRDA during Sep 2002
 All Branches of ECGC and its HQ are ISO 9001:2000 certified
 Accredited with “iAAA” by ICRA, associate of Moody’s Investors Service, indicating highest claim
paying ability & best prospects of meeting PH’s obligation
 Largest data base of buyers
 Maintains list of buyers with adverse experience
 GOI instilled confidence in ECGC by establishing NEIA (National Export Insurance Account) with
a corpus of Rs.2000 Cr to be managed by ECGC
 Tie-up with NSIC (National Small Industries Corporation) to offer our products to a number SMEs
spread over India.
 Full fledged 'factoring’ scheme launched.
 Refined and simplified Policy to suit SMEs. Criteria: Should possess certificate issued by MSME.
 Domestic credit Insurance Policies are now offered for exporters.
 Offers MARINE INSURANCE cover FREE for its Policy Holder as add-on benefit. Tied up with
United India Insurance for this purpose.
 Signs MOU with MOC every year and is expected to achieve “excellent” grade for the financial
year 2005-06
Cooperation agreement with MIGA (Multilateral Investment Guarantee Agency) an arm of World Bank.
MIGA provides 1. Political insurance for foreign investment in developing countries. 2. Technical
assistance to improve investment climate. 3. dispute mediation service. Under this agreement protection
is available against political and economic risks such as transfer restriction, expropriation, war, terrorism
and civil disturbances etc.
 Largest Policy – short term Rs.250 crores

 Largest database on buyers 3 lakhs
 Largest credit limit Rs.80 Crores
 Largest claim paid Rs.120 crores
 Quickest claim paid 2 days
 Highest compensation-Iraq Rs 788 Crores

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What Is ECGC

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What is ECGC?

Export Credit Guarantee Corporation of India Limited, was established in

What does ECGC do?

How does ECGC help exporters?

Need for export credit insurance

 Established 30 July 1957

 Largest Policy – short term Rs.250 crores

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