• Source: Export Credit Guarantee Corporation of India

ECGC Limited (Formerly Export Credit Guarantee Corporation of India Limited) is a government owned export credit agency of India. It is under the ownership of the Ministry of Commerce and Industry, Government of India, and is headquartered in Mumbai, Maharashtra. It provides export credit insurance support to Indian exporters and banks. Its topmost official is designated as Chairman and Managing Director, who is a central government civil servant under Indian Trade Service (ITS) cadre.
The 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 Corporation of India in 1983.




History


ECGC 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 Department of Commerce, Ministry of Commerce and Industry, Government of India. It is managed by an Asset Management Company comprising representatives of the Government, Reserve Bank of India, banking, insurance and exporting community.
The name of the company has been changed from Export Credit Guarantee Corporation of India Limited to ECGC Limited with effect from 8 August 2014 as per the certificate issued by the Deputy Registrar of Companies, Registrar of Companies, Mumbai.
ECGC Ltd. is the seventh largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is ₹3,190 crores and authorised capital is ₹5,000 crores.




Functions


Provides a range of credit risk insurance covers to exporters against loss in export of goods and services as well.
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 and advances.




Facilities provided by ECGC


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 debt
Provides information on credit-worthiness of overseas buyers
Short-Term Export Credit Insurance




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 the 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.
Cooperation agreement with MIGA (Multilateral Investment Guarantee Agency) an arm of World Bank. MIGA provides:

Political insurance for foreign investment in developing countries.
Technical assistance to improve investment climate.
Dispute mediation service.
It helps the exporter
Under this agreement protection is available against political and economic risks such as transfer restriction, expropriation, war, terrorism and civil disturbances etc...




Notable records


Largest Policy – short term ₹450 Crore
Largest database on buyers – ₹8 Lakh
Largest credit limit – ₹80 Crore
Largest claim paid – ₹540 Crore
Quickest claim paid – 2 days
Highest compensation – ₹788 Crore to Iraq
ECGC Ltd. now offers various products for the exporters and bankers. If readymade products are not suited to an exporter/banker, then ECGC designs tailormade products for them.




References






External links


Insurance Regulatory and Development Authority
Export Credit Guarantee Corporation of India Official site
ECGC Network of Branches
Indian Insurance ECGC India online forum
[1] ECGC Forum on FB
[2] ECGC Group on FB
[3] Unofficial website of ECGC on Facebook

Kata Kunci Pencarian:

• Sri Mulyani
• Export Credit Guarantee Corporation of India
• Export credit agency
• List of Export Promotion Organisations in India
• All India Financial Institutions
• List of insurance companies in India
• Public Sector Undertakings in India
• MMTC Ltd
• List of agencies of the government of India
• List of deputy governors of the Reserve Bank of India
• Ministry of Commerce and Industry (India)