The Export Credit Guarantee Corporation of India Limited (ECGC in short) is a company

wholly owned by the Government of India. It provides export credit insurance

support to Indian exporters and is controlled by thmerce and Industry (India)|
Ministry of Commerce]]. Government of India had initially set up Export Risks
Insurance Corporation (ERIC) in July 1957. It was transformed into Export Credit
and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit
Guarantee of India in 1983.

Export Credit Guarantee Corporation of India is 51 years old, it was setup with the
primary objective to provide export credit insurance and trade related services to
exporters.

ECGC of India Ltd, was established in July, 1957 to strengthen the export
promotion by covering the risk of exporting on credit. 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.900 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

[edit] How does ECGC help exporters?

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

[edit] 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

ECGC now offers various products for the exporters and bankers. If readymade
products are NOT suited to an exporter/banker then ECGC designs tailor made
products.