Export Credit Guarantee Corporation of India Insurance Plans for Exporter
xport Credit Guarantee Corporation of India limited is a government of India enterprise which provides export credit insurance facilities to exporters and banks in India. It functions under the administrative control of ministry of commerce and industry. It is managed by a board of directors comprising representatives of the government, Reserve Bank of India, banking, insurance and exporting community. Export Credit Guarantee Corporation of India provides various credit risk insurance products to suit requirements of Indian exporters and commercial banks. Various insurance schemes for exporters are described below:
ShortTerm Turnover based Insurance policies:
- Shipments Comprehensive Risks Policy: This policy is issued to exporters for a period of one year and whose turnover is more than 50 lakhs and is meant to cover risks in respect of goods exported on short term credit. This policy covers both commercial and political risks from the date of shipment.
- Small Exporters Policy: This policy is meant for small exporters whose turnover is less than 50 lakhs and it is generally provided for one year. It also covers both commercial and political risks.
- Specific shipment Policy: This policy provides cover to Indian exporters against commercial and political risks involved in export of goods on short term credit not exceeding 180 days. Exporters can take insurance either for a single shipment or for few shipments under the contract.
- Services Policy: While serving contract for providing technical and professional services, payments under the contract are subject to risks and this policy provides cover to give a measure of protection to such exporters of services.
- Export Turnover Policy: The turnover policy is issued for one year and the benefit of this policy is provided to large exporters who contribute more than Rs 10 lakhs per annum towards premium. It provides cover to risks ranging from political to commercial risks.
- Export Specific Buyer Policy: This policy provides cover to Indian exporters against commercial and political risks involved in export of goods on short term credit to a particular buyer.
- Consignment Exports Policy: The consignment policy protects Indian exporters from possible losses when selling goods to ultimate buyers. There are two policies available for covering consignment exports such as stock holding agent policy and global entity policy.
Short Term Exposure based Insurance policies:
- Buyer Exposure Policy: This policy is meant to provide exposure based cover on a selected buyer. The cover is available to provide commercial and political risks to the buyer for both LC and non-LC transactions. A separate buyer exposure policy is issued to each buyer covering all exports made to the buyer during a period of twelve months.
- IT-enabled Services Policy: This policy is issued to cover various commercial and political risks involved in rendering IT enabled services to a particular customer. The various commercial risks include insolvency of the customer, failure of the customer to make the payment within a specified period.
- Small and Medium Enterprise Policy: This is a policy exclusively meant for small and medium enterprise sector units. It protects policy holders from various commercial risks such as insolvency of the buyer and insolvency of the LC opening bank.
- Software project Policy: This policy is specially meant for software exporters of the country, namely software projects policy where payments will be received in foreign exchange. It includes various turnkey projects on progressive and milestone basis onsite and off-site locations of the companies.
Medium and Long Term Insurance policies:
- Construction Works Policy: This policy is designed to provide cover to an Indian contractor who executes a civil construction job abroad. The policy is meant to protect the contractor from various risks such as insolvency of the employer and failure of the employer to pay the amounts that become payable to the contractor as per terms of the contract.
- Specific Policy for Supply Contract: This policy is meant to provide a continuing insurance for the regular flow of an exporter’s shipment for which credit period does not exceed 180 days. Contract of supply of capital goods or turnkey projects or rendering services abroad that are not of repetitive nature are insured by Export credit Guarantee Corporation on a case to case basis under specific contract plans.
- Specific Shipment Policy: This policy is meant to provide protection against non-receipt of payments due to commercial or political risks. This policy can be obtained by exporters that have secured contract for supply of capital goods such as machinery or equipment on deferred terms of payment.
- Specific Services Policy: This policy provides cover to protect payments for professional or technical services. Hiring or leasing services can also be covered under the policy as payments are open to risk after expiration of supply contracts.
- Letter of confirmation cover: When a bank in India adds its confirmation to a foreign letter of credit, it binds itself to honor the drafts drawn by the beneficiary of letter of credit without any recourse but in certain cases, banks will suffer loss if the foreign bank fails to reimburse it with the amount paid to the exporter.
One can study various insurance policies offered by Export Guarantee Corporation of India to understand the various policies offered by the company. Further, one can make comparison between various policies in order to select a policy covering every clause of their trade risk.
Export Credit Guarantee Corporation of India Insurance Plans for Exporter - FAQs
1. How to pay a premium? What are the modes of payment available?
The Export Credit Guarantee Corporation of India Ltd offers different policies for short term and long term that supports the exporters again various risks of exporting the articles. It covers them against various commercial as well as political risks.
2. How can I check policy status for Export credit guarantee corporation of india insurance plans for exporter?
You can contact the nearest branch or call on the customer care it helps the banks to protect against risks of providing guarantees to various small, medium and large exporters.
3. What is the policy renewal process for Export credit guarantee corporation of india insurance plans for exporter?
You can visit the branch personally or ask support from the customer care. The customer care officer will help and guide you for the same.
4. What is the company’s process to settle claim for Export credit guarantee corporation of india insurance plans for exporter?
You need to intimate the company on the toll free number or write the company on the customer care mail id that is webmasters@ecgc[dot]in.
5. What is the policy cancellation process for Export credit guarantee corporation of india insurance plans for exporter?
For the cancellation of the policy, just visit the nearest branch.
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Export Credit Guarantee Corporation of India Insurance Plans for Exporter Reviews
I purchase the export credit guarantee corporation of india insurance plans for exporter. The policy coverage is high ~90% and the claims are high. The claiming procedure is easy because the service facilitate by the executives and staff members. Good investment.