ECGC (Export Credit Guarantee Corporation) assures exporters to provide cost-effective credit insurance cover
ECGC Ltd. (formerly Export Credit Guarantee Corporation) has assured the exporters that it will not increase the insurance premium and will continue to give credit insurance cover at the same cost, despite the disruption caused by COVID-19 pandemic. Addressing media persons and exporters in Mumbai, the Chairman & Managing Director of ECGC Shri M. Senthilnathan said “all payable claims will be duly paid and we have enough financial resources to meet any increase in claims.”
Shri M. Senthilnathan said that unlike other countries, in India, Government has created a special purpose vehicle in the form of NEIA (National Export Insurance Account) Scheme to support exports and ensure that the trust is funded on a leverage ratio of 1:20 so that the risk is undertaken by the trust and it is also supported by government funding.
About ECGC
ECGC was set up in 1957 with the objective of promoting exports from the country by providing Credit Risk Insurance and related services for exports. It functions under the administrative control of Ministry of Commerce & Industry.
The company is headquartered in Mumbai, and has branch offices across major cities of India.
Source: Government press release
Export Credit Guarantee Corporation of India (ECGC) has clarified that the coverage on export transactions to Russia has not been withdrawn. It has been mentioned in various media reports that ECGC has withdrawn its cover on the export transactions to Russia vide its circular dated 25.02.2022; this is factually incorrect.
In view of the prevailing situation, ECGC carried out a review of the country risk rating of Russia as per its extant underwriting policy. Accordingly, with effect from 25.02.2022, the cover category of Russia has been modified from Open Cover to Restricted Cover Category – I (RCC-I) for which revolving limits (normally valid for a year) are approved specifically on a case-to-case basis.
It is further clarified that this change has been made to ensure that ECGC is able to assess and monitor the risks covered under its export credit insurance policies and to place appropriate risk mitigation measures. The above measure will also enable the exporters / banks in India in assessing the export payment realization prospects from buyers and/or banks in Russia.
The customers have been suitably advised to contact their servicing branch of ECGC for cover on shipments to Russia.