Buyer Wise Policy In ECGC

I recently joined the Export Credit Guarantee Corporation Of India Limited (ECGC) and want the Buyer Wise Policy in ECGC. Will you please tell me what is the need for introduction of Buyer Exposure Policies? Also tell me What the maximum liability of ECGC?

Hii sir, I Wants to get the Buyer Wise Policy of the Export Credit Guarantee Corporation Will you Please Provide It ?

[pooja]

Export Credit Guarantee Corporation is a central government undertaking body to provide credit guarantee on the default of payments by the buyer. It works as an insurance firm who guarantees export payment, if the buyer defaults in making payment.

Credit Insurance Policies

Buyer Exposure PoliciesPresently, in the policies offered to exporters premium is charged on the exportturnover, though the Corporations exposure on each buyer is controlled through asystem of approval of credit limits on the buyer for covering commercial risks.

While this suits the small and medium exporters, many large exporters having large number of shipments have been complaining about the volume of returns to be filed under the policy necessitating the deployment of their resources for this purpose and also resulting in possible unintentional omissions or commissions in suchreporting, which have an impact on the settlement of claims.

There has been ademand for simplification of the procedures as well as for rationalization of the premium structure. Considering the requirements of such exporters,

the Corporation has decided to introduce policies on which premium would becharged on the basis of the expected level of exposure. Two types of exposure policies one for covering the risks on a specified buyer and another for covering the risks on all buyers- are offered.

Two types of Exposure policies are offered, viz, Exposure (Single Buyer) Policy for covering the risks on a specified buyer and Exposure (Multi Buyer) Policy for covering the risks on all buyers.

What does an Exposure (Single Buyer) Policy cover?:An exporter can choose to obtain exposure based cover on a selected buyer.

The cover would be against commercial and political risks attached to the buyer for both non-LC and LC transactions. A separate Buyer Exposure Policy will be issued for each buyer covering all the exports to be made to the buyer during a period of twelve months.

If the exporter has opted for commercial and political risks cover, failureof the LC opening bank in respect of exports against LC will also be covered, for the banks with WorldRank (WR) up to 25,000 as per latest Bankers almanac.

For covering the political risks only, in respect of LC transactions or shipments to associates, Buyer Exposure policy with endorsement restricting the cover to political risks only.

This policy can be availed by exporters holding Standard Policy in respect of any of their buyers.
Shipments to the buyers covered under Buyer Exposure Policies would be excluded from the purview of the Standard Policy.

What is a Multi Buyer exposure based policy ( MBEP) ?In case of an exporter making exports to a large number of overseas buyer, finds it inconvenient either to apply for buyer (single buyer) exposure policy for all buyers or declare their exports shipment wise , it canavail cover through a MBE policy. Under the policy the exporter can take cover for all its credit termexports made to all buyers for aggregate loss limit ( ALL),