1. HEARTY WELCOME
TO PHARMEXCIL MEMBERS
‘ECGC Support for
Indian Exports’

2. ABOUT US Incorporated 30/07/1957 Ownership Govt. of India
Primary Objective Export Credit Insurance
Role Export Promotion
Capital
Authorised Rs 1000 Crores
Paid-up Rs 900 Crores

3. About - ECGC Registered with IRDA / MOU with GOI
IS/ISO 9001:2000 compliant
iAAA rating – ICRA – Highest claim paying ability
Global expertise – Member of Berne Union
World’s Oldest - Vast Experience & Knowledge
Quicker decisions - WAN & E- Connectivity
Most rationalised premium rates
Diversified Products
Cover to 237 countries

4. RISK!!

5. SAYING
“Anything is possible”, said an intellectual, and “my experience is that the contingencies not provided for are those which happen”
TIME’S ISSUE DATED

6. Analysis of data by an Int’l Agency shows that in Advanced Economies
EVERY DAY MORE THAN one ….
New business is formed
Company changes its name
Directorship changes
Share ownership changes
Company changes control
New sets of Accounts are keyed in
AND
More than one Corporation Fails Every day!

7. US take military action on Iraq
US sub-prime mortgage losses may touch $300 billion: OECD
Lehman Brothers, 158 yr Old & fourth largest investment bank went bankrupt
Worlds largest Insurer in trouble
Military takes over in Thailand
Worlds largest car manufacturer files for bankruptcy protection
India Votes against Iran at IAEA Meet
FDA bans 30 drugs of Ranbaxy
US take military action on Iraq
UN Sanctions on Iran
Terrorism shows its ugly face in Mumbai

8. Hedging by Authorized Dealers
EXPORT INSURANCE
Goods
Receivables
Loss or Damage
Exchange Risk
Payment Risk
Hedging by Authorized Dealers
CREDIT INSURANCE
Marine Insurance

9. Policies - Risks Covered
Commercial Risks
(Buyer / LC Issuing Bank)
Insolvency
Protracted Default
Contract Repudiation

10. Political Risks - Covered
Inconvertibility
War, Civil War etc
Import Restrictions
Shipment Diversion

13. Evaluating a Buyer
Underwriting risks on a buyer means determination of the capacity or willingness of the buyer to meet his financial obligations at a future date
Assess the three C’s
Character
Capacity
Capital

14. Evaluating a Buyer - Other Factors
Opinion of Credit Information Agency
ECGC’s Experience
Commodity
Country

15. Evaluating a Buyer - Non-Financial Factors
Age of business and age under present management
Status
Branch/Subsidiary of a company domiciled in a third country
Type of Business

16. Evaluating a Buyer - Financial Factors
Net Worth
Currency ratio
Bank Borrowings
Current account Balances
Sales Turnover
Payment Record

17. Support Options Shipments (Comprehensive Risks) Policy
Exports Turnover Policy
Consignment Exports Policy
Exposure Policies
Software / ITES Policies
MLT Policies

18. Export Stimulus Package
MSMEs & the following commodity exporters – Addl. 5% cover under Policies
Textiles ( including handicrafts and handlooms),
Gem & Jewellery
Leather
Engineering goods
Carpets
Project goods
Auto components
Chemicals
Export credit advances to MSME borrowers – Addl. 10% cover for Banks
Additional cover available for shipments /advances made/ granted during the period 1st Jan 09 to 30th June 09

19. …Stats Year Premium Claims Paid 2006-07 617.66 372.26 2007-08 668.37
Rs. in Cr.
Year
Premium
Claims Paid
617.66
372.26
668.37
420.01
744.53
450.62

20. Rs. in Crores

21. Claims Experience – Since 1957 to 06-07
Rs. in Crores

22. visit us at ‘www. ecgc. in’ contact us at ‘chennai@ecgc
visit us at ‘ contact us at Tel: THANK YOU..