General
ECGC Reduces insurance cost for exporters
Mumbai, 31st May, 2017: In its 60th year of operation, ECGC took a customer friendly step by reducing the premium rate by an average 17% for its whole turnover policy covers. The average rate of premium under short term exporters’ business has come down from 28.19 paise per Rs.100 during Financial Year (FY) 2015-16 to 25.46 paise per Rs.100 during FY 2016-17, thus reducing the transaction cost for making exports competitive.
ECGC is a premier Export Credit Agency (ECA) of Government of India providing credit insurance to exporters against non-payment risks by the overseas buyers due to Commercial and Political reasons. It also provides insurance covers to banks against risks in export credit lending to the exporter borrowers.ECGC has an Authorized Capital of Rs.5000 crore and a Paid-up-Capital of Rs.1450 crore as on 31st March, 2017. Its net worth as on 31st March, 2017 stands at Rs.3619 crore.
During the FY 2016-17, it has initiated a number of customer friendly export promotion initiatives to boost India’s exports.
Apart from reduction in premium rates under whole turnover policies, it has also taken steps to make Export Factoring Scheme, cheaper for MSMEs. To give fillip to the Medium & Long Term (MLT) export sector, the Company has introduced covers to the subsidiary MLT exporters in India. In order to speed-up claim settlement, ECGC has set up Regional Claim Processing Centers (RCPC) at all the five Regional Offices, located in major metro cities. As an incentive to large exporters, the Volume Discount has been rationalized to extend the benefits to more and more exporters. .
Addressing a media meet to highlight business performance for the FY 2016-17, Mrs. Geetha Muralidhar, Chairman-cum-Managing Director of ECGC mentioned that the value of exports covered under exporters’ business as well as the number of policies in force had shown a redeeming trend with a growth of 4%. The value of business covered during FY 2016-17 stood at over Rs.1,41,000 crore and the number of policies in force at over 12,000 as compared to Rs.1,35,000 crore and 11,525 respectively in the FY 2015-16.