#1
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ECGC Scheme Risk Coverage |
#2
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Re: ecgc scheme risk coverage
How many risk coverage schemes are launched by Export Credit Guarantee Corporation of India (ECGC)? I also want to know about policies of Export Credit Guarantee Corporation of India (ECGC). So tell me about risk coverage schemes and policies?
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#3
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Re: ecgc scheme risk coverage
The Export Credit Guarantee Corporation of India (ECGC) covers following risks: COMMERCIAL RISKS Protracted Default of buyer Insolvency of buyer/LC opening bank Repudiation by buyer POLITICAL RISKS War/civil war/revolutions Any other cause attributable to importing country Import restrictions Exchange transfer delay/embargo Products Offered to Export: Standard Policy Small Exporters policy Export Turnover policy Specific buyer wise policy Global entity policy Multi buyer exposure policy IT enabled (single customer) policy IT enabled (multi customer) policy Customer specific policy (Tailor made) Specific Shipment Policy (short term) SME Policy Consignment export policy Single buyer exposure policy Software project exports policy POLICIES OF ECGC: Shipments (Comprehensive Risks) Policy: Whole Turnover principle- all exports covered Policy Period - 2 years Credit limit (Drawee wise) on all the buyers Premium rates schedule issued with Policy Selective options for LC/Associates/Consignments Monthly declarations with premium due No claim Bonus – every year 5% subject to maximum of 50% Advance Premium subject to Minimum premium of Rs.10,000/- 90% cover Small Exporters Policy: Cover for Commercial risks 95% and Political risks 100% Quarterly Declarations Premium payment as per standard premium schedule attached to Policy Export turnover not exceeding Rs.50 Lakhs per annum No Claim bonus applicable Policy Period - one year Advance Premium subject to Minimum Premium Rs.2000/- Export Turnover Policy: Minimum anticipated Premium of Rs.10 Lakhs Period of Policy- One year Premium rates discounted by 20% 5% cash discount for upfront payment of full annual premium Monthly or quarterly declaration as per exporter’s choice Premium payable upfront or in Quarterly instalments based on anticipated exports Higher Discretionary Limit of drawee wise limits on buyers (uptoRs100 lakhs for DP and Rs50 lakhs for DA) Specific Shipment Policy (SSP): Covering one shipment or One contract Commercial / Political risks and L/C comprehensive risks covered Submission of Shipment Statement and realisation report later Processing fee of Rs.1000/- Upfront premium before issue of Policy 80% cover Premium higher than standard premium rates Specific Buyer wise Policy: Covering One buyer / One Bank All shipments to buyer on Non LC terms or shipments under LC from bank covered 5% No Claim Bonus reduction on renewal Period of cover - One year Processing fee Rs.1000/- Monthly or quarterly shipment statements Quarterly/Annual premium payable upfront based on projected exports 80% cover Buyer Exposure Policy: Cover issued on exposure basis as opposed to turnover ( Exposure: Likely outstanding at any given point of time) Cover is up to Exposure or the Loss limit (Credit Limit) No monthly statements Coverage is 80% Selective cover for each buyer at exporter’s discretion One time payment of premium on exposure Annual statement of shipments at the end of Policy period on renewal Premium payable either quarterly or annually on the loss limit Processing fee Rs.1000/- on application Single Premium rate based on country rating for Comprehensive risks/Political risks Multi buyer exposure policy: Cover on exposure as opposed to turnover and cover for more than 1 buyer Processing Fee Rs.5000/- to accompany application Minimum 10% of projected turnover will be fixed as Aggregate Loss Limit (ALL) which will be the Maximum Liability Cover for each buyer is 10% of ALL as Single Loss Limit (SLL) Upfront premium payable before issue or in quarterly instalments 5% No Claim Bonus reduction on renewal Discretion to choose buyers for cover with exporter and shall be acceptable to ECGC List of buyers to be given with proposal and any addition to be advised Exporter can opt for higher exposure than 10% of turnover Exporter to have access to ECGC website for checking defaulter buyer list. Coverage is 80% and lower cover available with proportionate reduction of premium. Single premium rate irrespective of country grading Export Credit Guarantee Corporation of India (ECGC) Policies: pharmexcil.com/data/uploads/ECGC%20PRESENTATION.ppt |
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