Credit Risk Insurance

8/3/2019 Credit Risk Insurance

1/27


2/27

Amity International Business School

RISK!!


3/27


What is Risk?

Uncertainty aboutthe future

outcome Lack of

knowledge

Imperfection inknowledge

Possibility of Loss


4/27


Export CreditRisk

Exports Goods

Services

Credit

Extending supplier credit:DP(Docs against Payment),DA(Docs agt Acceptance),OA(open a/c)

Risk

Possibility of non-payment ofaccounts receivables


5/27


Types of ExportCredit Risks

CreditRisk

Legal

Risk

PoliticalRisk

Exchange

Risk

TransferRisk

ExportCreditRisk


6/27

Amity International Business SchoolCredit Risk

The risk of

Insolvency

Default Fraud

Unwillingness to accept the goods on

the part of the buyer

Credit riskAll resulting in..
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


7/27


Payment Risk

EXPORT INSURANCE

Goods Receivables

ExchangeRisk

Loss orDamage

MarineInsurance

Hedging byAuthorized

Dealers

CREDITINSURANCE
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


8/27


Export CreditInsurance

Export Credit insurance is cover offered byinsurance companies which encompassesthe risk of non-payment within export

operations

Risks covered by export credit insurers:

Commercial Risk Political Risk
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


9/27

Amity International Business SchoolExport Credit

Insurance

Credit Insurance Covers to exporters against Credit Risk losses inexport of goods & services both under Short term and Medium andLT

CreditInsurance covers to banks to protect them against risks of

non payment by exporters both under Short term and Medium andLT Domestic Credit Insurance covers toExporters and Banks in

respect of their local sales and working capital finance, respectively Overseas Investment Insurancecovers to protect Indian

Entrepreneurs investing in Overseas Ventures (Equity/Loans)against expropriation risks

Exchange Fluctuation Covers to exporters to protect them inrespect of their exchange losses under Medium and LT exports
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


10/27


ECGC An Export Promotion

Institution

Provides credit risk covers to Exporters against nonpayment risks of the overseas buyers / buyers

country in respect of the exports made.

Provides credit Insurance covers to banks againstlending risks of exporters

Assessment of buyers for the purpose of underwriting

Preparation of country reports

International experience to enhance Indiancapabilities

An ISO organisation excelling in credit insuranceservices
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


11/27


VISION

To excel in providing credit insurance and trade-related services.

MISSION

To support the Indian Export Industry by providing

cost-effective insurance and trade-related services tomeet the growing needs of the Indian export marketthrough the optimal utilization of available resources.
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


12/27


LC

RISKS

POLITICAL RISK(Open Cover

andRestricted cover )

COUNTRYBUYER BANK

LC / NON LC

COMMERCIAL RISK

Risks Coveredby ECGC
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


13/27


Risks Covered

COMMERCIAL RISKS Insolvency of buyer/LC opening bank

Protracted Default of buyer Repudiation by buyer

POLITICAL RISKS War/civil war/revolutions

Import restrictions Exchange transfer delay/embargo

Any other cause attributable to importingcountry
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


14/27


Products offered toExporters

Standard Policy Small Exporters policy Specific Shipment Policy (short term) Export Turnover policy Specific buyer wise policy

Consignment export policy Global entity policy Single buyer exposure policy Multi buyer exposure policy Software project exports policy

IT enabled (single customer) policy IT enabled (multi customer) policy SME Policy Customer specific policy (Tailor made)
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


15/27

Amity International Business SchoolShipments( Comprehensive Risks)

Policy Whole Turnover principle- all exports covered Selective options for LC/Associates/Consignments

90% cover Advance Premium subject to Minimum premium of

Rs.10,000/- Policy Period - 2 years Credit limit (Drawee wise) on all the buyers

Monthly declarations with premium due Premium rates schedule issued with Policy No claim Bonus every year 5% subject to maximum

of 50%
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


16/27


Small Exporters Policy

Export turnover not exceeding Rs.50 Lakhsper annum

Advance Premium subject to MinimumPremium Rs.2000/-

Policy Period - one year Cover for Commercial risks 95% and

Political risks 100% No Claim bonus applicable Quarterly Declarations Premium payment as per standard premium

schedule attached to Policy
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


17/27

Amity International Business SchoolExport Turnover Policy

Minimum anticipated Premium of Rs.10 Lakhs

Period of Policy- One year

Monthly or quarterly declaration as per exporters choice

Higher Discretionary Limit of drawee wise limits onbuyers (uptoRs100 lakhs for DP and Rs50 lakhs for DA)

Premium rates discounted by 20%

Premium payable upfront or in Quarterly instalmentsbased on anticipated exports

5% cash discount for upfront payment of full annualpremium
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


18/27


Specific Shipment Policy(SSP)

Covering one shipment or One contract

Processing fee of Rs.1000/-

80% cover

Premium higher than standard premium rates

Upfront premium before issue of Policy

Commercial / Political risks and L/C

comprehensive risks covered

Submission of Shipment Statement andrealisation report later


19/27

Amity International Business SchoolSpecific Buyer

Wise Policy

Covering One buyer / One Bank Processing fee Rs.1000/- Period of cover - One year

All shipments to buyer on Non LC terms orshipments under LC from bank covered Quarterly/Annual premium payable upfront

based on projected exports

80% cover Monthly or quarterly shipment statements 5% No Claim Bonus reduction on renewal
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


20/27


21/27

Amity International Business SchoolMulti buyer

exposure policy Cover on exposure as opposed to turnover and cover for more

than 1 buyer Discretion to choose buyers for cover with exporter and shall be

acceptable to ECGC Processing Fee Rs.5000/- to accompany application List of buyers to be given with proposal and any addition to be

advised Minimum 10% of projected turnover will be fixed as Aggregate

Loss Limit (ALL) which will be the Maximum Liability Exporter can opt for higher exposure than 10% of turnover Cover for each buyer is 10% of ALL as Single Loss Limit (SLL)

Exporter to have access to ECGC website for checking defaulterbuyer list. Coverage is 80% and lower cover available with proportionate

reduction of premium. Single premium rate irrespective of countrygrading

Upfront premium payable before issue or in quarterly instalments

5% No Claim Bonus reduction on renewal
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


22/27


Consignment (Stock holding Agent)Policy

Consignment exports covered under this exclusive cover for aperiod of 1 year

Premium on shipments to the agent payable on the turnover Upfront premium quarterly / annually

Coverage 80%. Exporters holding Standard Policy will get 90%cover One Agent / Multiple buyers Cover on agent or on ultimate buyers as desired by exporter Credit limits (Drawee wise limits) to be obtained on ultimate

buyers

Discretionary Credit limit available upto 5% of turnover with maxof Rs100 lakhs

Longer period of 360 days for realization of bills Premium payable on the basis of country classification and

tenor of 90/180/360 days. Extension upto 540 days permissiblewith additional premium



23/27


Consignment Exports (Global Entity)Policy

Coverage for selling goods through exporters own subsidiary or

branch office during a period of 1 year Premium on shipments to the GE payable on the turnover Upfront premium quarterly / annually Coverage 80%. Exporters holding Standard Policy will get 90% cover One GE / Multiple buyers

Cover on GE or on ultimate buyers as desired by exporter Commercial cover of Insolvency of GE only if Joint stock company and

equity stake not exceeding 49%; Otherwise only Political risks cover Credit limits (Drawee wise limits) to be obtained on ultimate buyers Discretionary Credit limit available upto 5% of turnover with max of

Rs100 lakhs

Longer period of 360 days for realization of bills Premium payable on the basis of country classification and tenor of

90/180/360 days. Extension upto 540 days permissible with additionalpremium



24/27

Amity International Business SchoolMSME Policy

Policy issued for small exporters with ExportTurnover not exceeding Rs10 Lakhs andregistered under MSME Act, 2006

Cover available upto Rs10 lakhs with annualpremium of Rs 5,000 and a processing feeof Rs1,000

Cover available will be 90% Maximum claim payable is Rs3 lakhs on any

buyer No requirement of monthly declaration of

shipments

E t F t i


25/27


Export FactoringServices

Factoring services involving finance, creditprotection, collection under one roof

Finance against export receivables facilitatedthrough a bank

Credit protection available after assessment ofbuyers

Receivables financed without recourse

80% prepayment against invoices and balance after

90 days from due date less charges, if payment notreceived
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


26/27


Export Credit InsuranceCovers to

Banks Covers for working capital granted bycommercial banks to Exporters at Preshipment and Post shipment stages

Covers available on exporter wise, bankbranch wise and bank wise

Losses due to protracted default /Insolvency of exporters covered

Cover varies from 60% to 95%depending on the type of cover
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt


27/27

Amity International Business SchoolExport Stimulus

Package

Additional cover of 5%, subject to maximum protection of95% available for all MSME exporters

All exporters of Textiles ( including handicrafts andhandlooms), Gem & jewellery, leather, engineeringgoods, carpets, project goods, auto components and

chemicals will also get the additional protection of 5% Additional cover through the National Export Insurance

Account of the GOI Bank advances to MSME borrowers for exports will get

an additional protection of 10% subject to maximum

protection of 85% under the Credit Insurance covers tobanks

Additional cover available for shipments /advancesmade/ granted during the period 1st Jan 09 to 30th June09
http://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppthttp://g/DAY%20THREE/ECGC/pune.ppt

Credit Risk Insurance

Documents

Transcript of Credit Risk Insurance