Policies And Guarantees Issued By ECGC

Hello sir, I am Hiren Shah. I am from Mumbai. I want you to help me by giving me some information about the policies and guarantees issued by ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd). Can you help me?

[Pathak]

As you have asked about the policies and guarantees issued by ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd), I am giving you some information about it, check below for the details
Shipments (Comprehensive Risks) Policy, commonly known as the Standard Policy, is the one ideally suited to cover risks in respect of goods exported on short-term credit, i.e. credit not exceeding 180 days.
This policy covers both commercial and political risks from the date of shipment.
It is issued to exporters whose anticipated export turnover for the next 12 months is more than Rs.50 lacs.

Risks covered under the Standard Policy

Commercial Risks
Insolvency of the buyer.
Failure of the buyer 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
Imposition of restriction by the Government of the buyer's country or any Government action
War, civil war, revolution or civil disturbances in the buyer's country
Interruption or diversion of voyage outside India
Any other cause of loss occurring outside India not normally insured by general insurers, and beyond the control of both the exporter and the buyer.

Exchange Fluctuation Risk Cover:

The Exchange Fluctuation Risk Cover is intended to provide a measure of protection to exporters of capital goods, civil engineering contractors and consultants who have often to receive payments over a period of years for their exports, construction works or services.