WELCOME TO PHARMEXCIL MEMBERS FOR PRESENTATION ON E. C. G. C WELCOME TO PHARMEXCIL MEMBERS FOR PRESENTATION ON E.C.G.C. POLICY SCHEMES Sunday, April 07, 2019Sunday, April 07, 2019

ECGC : AN OVERVIEW Established on 30th July 1957 Board of Directors Ministry of Commerce Authorised Capital Rs.1000 crore Paid-up Capital of Rs.600 crore (Proposed Rs.800 crore) 5 Regional Offices, 51 Branches Registered with IRDA on 27.9.2002. Sunday, April 07, 2019Sunday, April 07, 2019

ECGC OVERALL PERFORMANCE 1957 TO 2005 PREMIUM INCOME RS. 4117.49 CRORE CLAIMS PAID RS. 3992.01 CRORE RECOVERIES MADE RS. 610.93 CRORE Sunday, April 07, 2019Sunday, April 07, 2019

PRINCIPLES OF CREDIT INSURANCE Principle of Co – Insurance Principle of spread of risk Principle of good faith Sunday, April 07, 2019Sunday, April 07, 2019

SHORT TERM SCHEMES Standard/Turnover Policy Specific Shipment/Buyerwise Policy Single/Multibuyer Exposure Policy Consignment Exports Policy Software Exports Policy Sunday, April 07, 2019Sunday, April 07, 2019

RISKS COVERED Buyers Risks Insolvency Protracted Default Contract Repudiation Bank Risks Insolvency of the Bank Sunday, April 07, 2019Sunday, April 07, 2019

RISKS COVERED (CONT.) Political Risks Inconvertibility Contract Frustration Contract Cancellation Import Restriction Shipment Diversion Sunday, April 07, 2019Sunday, April 07, 2019

RISKS NOT COVERED Commercial / quality disputes Buyer’s failure to obtain necessary import authorization before shipment Insolvency/default of any agent of exporter or collecting bank Risks covered by General Insurers Exchange rate fluctuation Sunday, April 07, 2019Sunday, April 07, 2019

PRODUCT FEATURES Turnover – based Premium structure Standard/Turnover Policy Specific Shipment/buyer-wise Policy Consignment Exports Policy Exposure Based Premium Structure Single Buyer Exposure Policy Multibuyer Exposure Policy Software Exports Policy Sunday, April 07, 2019Sunday, April 07, 2019

STANDARD/TURNOVER POLICY Policy Period – One/Two years Wholeturnover Concept with exclusions Percentage of Cover – 90% Important Obligations Shipment Declarations along with premium Credit Limit on buyers Overdue Declarations Sunday, April 07, 2019Sunday, April 07, 2019

STANDARD/TURNOVER POLICY (CONT.) Turnover Discount No Claim Bonus – Maximum 60% Discretionary Limit Waiting Period for Claims Documents for Claims Sunday, April 07, 2019Sunday, April 07, 2019

OTHER OBLIGATIONS Extension in due date Resale to alternate buyer Conversion of terms of payment Reshipment of the goods No discount to original buyer Sunday, April 07, 2019Sunday, April 07, 2019

EXPOSURE – BASED POLICY Concept Incidence of premium Credit Limit Submission of monthly declarations Premium and claim on loss limit Loss limit/Aggregate loss limit Sunday, April 07, 2019Sunday, April 07, 2019

EXPOSURE – BASED POLICY (CONT.) Other Features Coverage of all types of terms of payment No cover for Restricted Cover Countries and Defaulted buyers Risks covered – same as Turnover based policy. Premium – Upfront Qtly on LL/ALL 5% discount on Annual Upfront Premium Percentage of cover – 80/90% Report of overdues/claim – same as of Standard Policy. Sunday, April 07, 2019Sunday, April 07, 2019

CONSIGNMENT POLICY Consignment Export (Stock-holding Agent Policy (CEP) Global Entity policy (GEP) Sunday, April 07, 2019Sunday, April 07, 2019

FEATURES OF CONSIGNMENT POLICY Combination of Risks Covered – Stock holding Agent Commercial risks on both stock-holding agent & ultimate buyer with political risk for entire period Commercial risks on the ultimate buyer with Political risk for entire period Commercial risk on stockholding agent only with political risk for the entire period; and Only political risk for the entire period Sunday, April 07, 2019Sunday, April 07, 2019

CONSIGNMENT POLICY (CONTD) Combination of Risk covered – Global Entity Commercial risks on ultimate buyers only with political risk for the entire period Only Political risk for the entire period If the Global entity is an associate company with less than 49% share holding when both the units are joint stock company, then Insolvency of the Global entity and commercial risk on ultimate buyers with political risk for the entire period Insolvency of the global entity with political risk for the entire period. Sunday, April 07, 2019Sunday, April 07, 2019

Features of Consignment policy (Cont.) Anticipated commercials risks are a) Insolvency of the buyer / stock-holding agent b) Breach of contractual obligation c) Default in remitting sales consideration d) Misappropriation of stocks by the agent Premium for quarterly / monthly shall be paid in advance before issue of the policy Monthly shipment statement before 15th of subsequent month Percentage of cover 80/90% Discretionary limit on ultimate buyer Sunday, April 07, 2019Sunday, April 07, 2019

Other Schemes Software Projects & IT Enabled Services Policy Overseas Investment Insurance Transfer Guarantee Sunday, April 07, 2019Sunday, April 07, 2019

THANK YOU Large Exporters Branch 2nd Floor Dalamal House Nariman Point, Mumbai 400 021 Email leb.mumbai@ecgcindia.com Tel N0. 22823740/3780/ 22830480/0482 Sunday, April 07, 2019Sunday, April 07, 2019