The ECGC Limited is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian. Besides above, ECGC also offers some Special Schemes, such as Transfer guarantees, (covering risk on transfer of funds), Scheme for Small Exporters. Special Schemes – ECGC. Suitability. Special schemes consists of bundle of covers addressing the needs of banks and investors in foreign venture. This apart .
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Views Read Edit View history. Thereafter, the annual premium will have to schsme paid in such a manner that premium for two years ahead is always kept paid to the Ecyc. The risks of scneme, expropriation and restriction on remittances are covered under the schemes. An outbreak of war or civil war may block or delay payment for goods exported. The distinguishing features of a Construction Contract are that a the contractor keeps raising bills periodically throughout the Contract period for the value of work done between one billing period and another ; b to be eligible for payment, the bills have to be certified by a consultant or supervisor engaged by the Employer for the purpose and c that, unlike bills of exchange raised by suppliers of goods, the bill raised by the contractor do not represent conclusive evidence of debt but are shceme to payment in terms of the Contract which may provide, among schsme things, for penalties or adjustments on various counts.
Cover can be obtained from the date of bidding right up to the final instalment. Features of this cover are: As the investor would be having a hand in the management of the joint venture, no cover for commercial risks would be provided under the scheme. Besides, the Contract value itself may only be an estimate of the work to be done, since the Contract may provide for cost escalation, variation contracts, additional contracts, etc. The Comprehensive Risks Policy provides protection against commercial risks such as Insolvency of Buyer, protracted default, non-acceptance of goods shipped in addition to covering political risk of war, civil war, exchange transfer delay etc.
The balance amount of the premium will have to be paid only if the exporter succeeds in scheem bid.
The services offered by ECGC are in the nature of credit insurance products. Retrieved from ” https: Special schemes consist of bundle of covers addressing the needs of banks and Investors in foreign venture. ECGC enters into agreement with the exporters for providing cover mentioning the terms and conditions xcheme the maximum liability.
Special Schemes – ECGC
In order to protect such exporters ECGC has the following types of covers. Premium rates for Contract Policies will be higher than that for Shipment Policies.
Amount insured shall be reduced progressively in the last five years of the insurance period. Cover for dividend receivables may not be given in case of risky countries; cover only for original investment.
Recommendations These scheme are exgc at specific audiences such as banks, investors in foreign countries and exporters taking up long term projects abroad, covering distinct risks faced by them. This scheme provides protection g.
Where the risks are covered by the ECGC, banks should not slacken their efforts towards realisation of their dues against long outstanding export bills. If the terms and conditions of the contract undergo any change subsequently, ECGC should be informed of the same, so that evgc, if any, in the applicable premium rates can be ascertained.
The guarantee was invoked by the beneficiary 2. Three schemes are offered under Special Schemes, they are: Instalment facility may be granted for payment of a part of the premium if the contract value is very large and if the shipments are spread over a relatively long period, but the entire premium will have to be paid by the time the last shipment is made.
Specific Contract Policy which also can be for comprehensive or political egcc differs from Shipments Policy in that the former provides the exporter not only with the post-shipment cover like the latter but also with some pre-shipment cover from the date of contract.
A coup or an insurrection may also bring about the same result. These also cover a host of non-fund based facilities that are extended to exporters.
ECGC ltd now offers various products for the exporters and bankers. Specific Contract Comprehensive Risks Policy; and 4.
What does LCL mean? Financial Guarantees Financial Guarantees are issued egc banks in India to protect them from risks of loss involved in their extending financial support at pre-shipment and post-shipment stages. These scheme are targeted at specific audiences such as banks, investors in foreign countries and exporters taking up long term projects abroad, covering distinct risks faced by them.
Economic difficulties or balance of payment problems may lead a country to impose restrictions on either import of certain goods or on transfer of payments for goods imported. The types of guarantees issued by Indian bank are: Any fees payable towards technical know-how, consultancy or management services etc.
Export Credit Guarantee Corporation of India
However, it would be in the interest of Project exporters to obtain ‘In – Principle’ clearance from their bankers and ECGC assuring them of support in the event of their securing the sdheme. From Wikipedia, sche,e free encyclopedia. It is, therefore, the appropriate policy for an exporter to take if the payments are open to both commercial and political risks. The overseas investment may be made either by rcgc of equity or by way of loans Equity Any contribution made to the enterprise in return for shares either by cash remittances or by way of export of capital goods or services can be covered.
In case of Projects involving long construction periods, cover may be extended for a period of 15 years from the date of completion of the Project subject to a maximum of 20 years from the date of commencement of the investment.
Export Credit Guarantee Corporation of India – Wikipedia
The political risk policy on the other hand provides protection against political risk policy.