ECGC Policy


Export Credit Guarantee Corporation of India (ECGC) is an independent company registered under the Indian Companies Act, which is wholly owned by the Government of India. The administrative control of this corporation belongs to the Foreign Trade Department under the Ministry of Commerce. This corporation provides ECGC policy to the Indian exporters the export credit insurance support.

The head office of the ECGC policy corporation is in Mumbai. In addition to this head office, regional offices in Mumbai, Kolkata, Chennai, and New Delhi and 22 branch offices have been set up in major cities of the country.

Export Credit Guarantee Corporation of India Insurance Policies (ECGC Policy)


Export Credit Guarantee Corporation of India Insurance Policies (ECGC Policy):

Indian Export Credit Guarantee Corporation provides exporters with various types of insurance policies (ECGC Policy) to protect exporters from different types of risks, which can be divided into four classes:

  • Standard Policies
  • Small Exporter’s Policies
  • Special Policies
  • Services and Construction Policies

Guarantees To Banks


Guarantees To Banks:

ECGC Policy has made a plan to provide guarantees of banks to increase the eligibility of exporters to get better and more services from their bankers. Banks have been assured by the speculations that if the exporter is unable to fulfill his liabilities towards the bank and as a result, the bank has to suffer losses, then the ECGC policy will compensate for a large portion of the loss suffered.

For the remaining loss, the bank also has to be a co-applicant. If any amount is recovered after payment of the claim, then it will be shared between the corporation and the bank in the same ratio in which the loss was borne by him. The recovery expenditure will be charged before the amount realized.

The Corporation provides the following types of guarantees to meet the various needs of exporters:

  • Export Execution Guarantee
  • Guarantee the packing loan
  • Export production guarantees
  • Guarantee of ship-post-war export credit
  • Export Finance Guarantee and
  • The Export Finance Guarantee.

Special Policies of ECGC Policy:

Here are some special policies of the Export Credit Guarantee Corporation of India (ECGC policy) below:

Transfer Guarantee


Transfer Guarantee:

While a bank located in India confirms the overseas letter of the credit, and then it obliges to accept the draft strained by the recipient of the letter of the credit without being adjudged on it, provided that such draft is definitely the condition of the letter of credit card According to which you have been drawn.

The purpose of the transfer guarantee is to provide protection to India-based banks from the losses arising from such risks. Alternatively, the transfer protects the bank from guarantees by either political risks or from commercial and political risks.

Up to 90% of the loss because of political risks and up to 75% of the loss caused by commercial risks is provided. Its premium is generally taken as per the rate of the insurance policy of the corporation providing protection of the goods.

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Overseas Investment Insurance


Overseas Investment Insurance:

The corporation has made a plan for the protection of Indian investments abroad. In order to establish or expand the projects abroad, the defense will be available under the investment insurance phase for investments in the form of equity share capital or unconditional debt.

So, the period of insurance protection will not normally be more than 15 years. In the case of the projects whose construction period is very long, the defense can be provided for 15 years from the date of accomplishment of the project, but the maximum duration will be 20 years from the date of the initial investment.

Exchange Fluctuation Risk Cover


Exchange Fluctuation Risk Cover

The purpose of the schemes to protect against the risk of decreasing foreign currency exchange rates is to provide protection to the exporters of capital goods, counselors of civil engineering, as they are often paid for their exports, services or construction works.

So, In this payment, the risk of the increase in foreign currency is maintained and the futures forex market does not provide protection for such unrealized payments.

Available for payment programs with a 12 month or longer duration and up to a maximum period of 15 years, from the risk of decline in foreign currency exchange rates. You can obtain it from the date of defense bid till the last installment.

Decrease risk (contract) protection in the foreign currency exchange rate can only be issued if payments are received within a period of more than 12 months from the date of the contract, but in such cases within 12 months. Safety will also be availed for installments.


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