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8/12/2019 Presentation of ECGC, Kolkata (1)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover the
You focus on exports. We cover the risks.You focus on exports. We cover the
You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
WELCOME
TO A PRESENTATION ON
INSURANCE & RISK MANAGEMENT
and
ROLE OF ECGC
8/12/2019 Presentation of ECGC, Kolkata (1)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover the
You focus on exports. We cover the risks.You focus on exports. We cover the
You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
ECGC Mission
To supportthe Indian export
industryby providing cost effectiveinsuranceand trade related
services to meet the needs of the
Indian exporters
8/12/2019 Presentation of ECGC, Kolkata (1)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover the
You focus on exports. We cover the risks.You focus on exports. We cover the
You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
OBJECTIVE of ECGC
To PROMOTE EXPORTSMainly by
Protecting Exportersagainst
COMMERCIAL & POLITICAL RISKS In
realising export proceeds
Protecting Banks against
RISK OF DEFAULT in export credit
Protecting Investors against POLITICALRISKS in Shareholders equity and loan Inoverseas investments
8/12/2019 Presentation of ECGC, Kolkata (1)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover the
You focus on exports. We cover the risks.You focus on exports. We cover the
You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
ECGC Fact sheet
Established in 1957
Fully owned by GOI
Under administrative control of MOCI
Capital Base
Highest ICRA rating of IAAA
5 Regional Offices and 51 Branch Offices
All Branches ISO 9001:2000 certified
Member of Berne Union
MOU with GOI
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover the
You focus on exports. We cover the risks.You focus on exports. We cover the
You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Key Performance Highlights
Sr.
No.Description
Financial Years
( Audited Data)
2010-11 2011-12
1Gross Premium
incomeRs.885.47 cr. 1004.80 cr.
2 Claims Paid Rs.620.53 cr. 712.96 cr.
3RecoveriesReceived
Rs.136.07 cr. 168.69 cr.
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover the
You focus on exports. We cover the risks.You focus on exports. We cover the
You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
What is Risk?
Uncertainty abou t futu reoutcome due to :
Unexpected occurrence of events
Uncontrollable factors
Lack of Information
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Risk Perceptions
Industry risk
Business risk
Risk of contract frustration
Risk of physical damage
Credit risk
Country Risk
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
What is Credit Risk
Definition: The potentialthat a debtorwill failto
meet its payment obligationsin accordance with
agreed terms.
Export credit risk:
a) Buyer related problems
b) Country related
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Risk Management
Analysis, acceptance or mitigation
Risk avoidance
Risk Transfer
Risk Sharing
Risk retention
8/12/2019 Presentation of ECGC, Kolkata (1)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
PAYMENT RISK
RISK MANAGEMENT IN EXPORTS
Goods Receivables
Exchange
Risk
Loss or
Damage
Marine
Insurance
Hedging by
Authorized
Dealers
CREDIT
INSURANCE
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
LC
Payment Risks
POLITICAL RISK
COUNTRYBUYER BANK
LC / NON LC
COMMERCIAL RISK
Payment Risks
8/12/2019 Presentation of ECGC, Kolkata (1)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Role of ECGC as an Export Credit
Insurer
Providing export credit insurance coversto
Exporters
against loss in export of goods & services under
ST & MLT (POLICY Scheme)
Providing export creditinsurance coversto
Banks & FIsto enable exporters obtain better facilities from
them (ECIB) (formerly known as Guarantees)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
War, Civilwar, Internaldisturbances
exchangetransfer
blockages/delay
New import
restrictions,cancellation of
import licence,
etc.
Risks covered -Political
Diversion ofvoyage dueto war
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Insolvency ofbuyer/bank
Nonacceptanceof exportedshipment
Default ofbuyer/bank
Risks covered- Commercial
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Risks NOT considered Credit risk
Non fulfillment of contractual obligations by exporter
including quality dispute.
Default or insolvency or any omission /commission of any
agent of exporter/ buyer
Failure of buyer to obtain necessary approvals for
imports
Causes inherent in nature of goods Exchange fluctuation risks
Physical loss/damage to goods
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Principles of Credit Insurance
Good Faith
Co-insurance
Spread of risks
8/12/2019 Presentation of ECGC, Kolkata (1)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Buyer & Country Underwriting
The 2 pillars of Export Credit Insurance :
and
BuyerUnderwritingthat assessesbuyer risks
Limit fixed on Buyer
CountryUnderwritingthat assessescountry risks
Country classification
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Products offered to Exporters
Declaration Based Policies
Whole Turnover
1) Standard (SCR) Policy
2) Small Exporters Policy
3) Export Turnover Policy
Specific transaction
1) Specific Shipment Policy
2) Specific Buyer Policy
3) Transfer Guarantee (for Banks)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Products offered to Exporters
Exposure Based Policies
1) Single Buyer Exposure Policy
2) Multi buyer Exposure Policy
3) SME Policy
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Products offered to Exporters
Consignment Based Policies
1) Consignment Export Policy
2) Global Entity Policy
8/12/2019 Presentation of ECGC, Kolkata (1)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Products offered to Exporters
Covers for IT/ITES industry
1) Software project exports policy
2) IT enabled (single customer) policy
3) IT enabled (multi customer) policy
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Premium Structure Basis
Country Grouping - 7 fold (237 countries)
( A1, A2, B1, B2,.. D)- Higher the country
group, lower the premum rates
Terms of Payment- More superior the payment
terms, lower the premium rate
Specific approval required for Restricted Cover
countries
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Shipments (Comprehensive Risks) Policy
Whole Turnover principle
Selective options for exclusion-
LC/ Associates/ Consignments 90% cover
Minimum premium of Rs.10,000/-
Policy Period - 2 years
Buyer wise Credit limit Discretionary limit
Monthly declarations with premium
No Claim Bonusyearly 5%; max 50%
8/12/2019 Presentation of ECGC, Kolkata (1)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Small Exporters Policy
Turnover not exceeding Rs.50 Lakhs p.a.
Minimum Premium Rs.2000/-
Policy Period - one year Higher percentage of cover-
Commercial risks 95%;
Political risks 100% No Claim bonus
Quarterly Declarations
8/12/2019 Presentation of ECGC, Kolkata (1)
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
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
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
SME POLICY
For exporters with Export Turnover notexceeding Rs10 Lakhs andregistered underMSME Act, 2006
Cover available upto Rs10 lakhs. Annual premium Rs 5,000 and processingfee of Rs1,000
90% cover
Maximum claim payable is Rs3 lakhs on anybuyer
No requirement of monthly declaration ofshipments
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Benefits For Exporters
Protection for account receivable
Reduction in Bad debt
Improvement in quality of financial planning
Enhancement in risk taking capacity
Easy access to bank finance on liberal terms
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
ECIBS TO BANKS
Contract of insurance between bank & ECGC
Protects banks against losses in export credit
due to
- Insolvency of exporter
- Protracted default of exporter
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Benefits For Banks
Protection For Pecuniary Liabilities Against
Funded and Non Funded Credit Facilities To
Exporters
Enables To Waive Collateral Securities
Lesser Capital Deployment requirement.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITEDEXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
In the Service of Exporters and
Banks since 1957
hank YouPlease visit us at: www.ecgc.in
: kolkata@ecgc.in;ero@ecgc.in
http://www.ecgc.in/http://www.ecgc.in/Recommended