The person getting insured must voluntarily disclose to the insurer,complete and true information regarding export transactions/ business sought to be insured. Correspondingly, insurer must provide to the insured, complete and clear information regarding terms and conditions of the contract of Insurance.
The insured must have pecuniary interest in the contract of insurance. The insured must stand to benefit from the receipt of export proceeds and to suffer the losses arising due to commercial and political risks specified in the policy.
A credit insurance policy is offered by the insurer for giving protection against unpredicted financial losses arising due to political and commercial risks. The compensation cannot be more than the actual loss. Further, the compensation paid will be on account of the losses specified in the policy and incurred by the insured during the policy period.
The credit insurer does not indemnify 100% of the losses incurred by the insured, but a certain mutually agreed percentage of the losses, thus envisaging that the insured has a reasonable stake in the export transactions. This should be borne out by the manner in which the insured carries out the transaction(s) and protects the assets.
When a loss is caused by more than one cause, the proximate or the nearest or the closest cause will be taken into consideration to decide the liability of the insurer.
It is the duty of the insured to take all possible steps to minimize loss arising on account of risks specified in the policy. It is the responsibility of the insured to take all practicable measures to avoid further losses.
The Insurer, having compensated the insured for the losses, is entitled to avail himself of the rights to recover the same from the buyer/ importer/ debtor. Upon payment of a claim by the insurer, the insured shall take all necessary steps to effect recoveries or shall on the advice of the insurer, assign and transfer his rights and remedies for recovery to the insurer.
ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.), wholly owned by Government of India, was set up in 1957 with the objective of promoting exports from the country by providing Credit Risk Insurance and related services for exports. Over the years it has designed different export credit risk insurance products to suit the requirements of Indian exporters and commercial banks extending export credit.
ECGC is essentially an export promotion organization, seeking to improve the competitiveness of the Indian exporters by providing them with credit insurance covers. ECGC keeps its premium rates at the optimal level.
This brochure contains various export credit risk insurance products/covers available to the exporters. The Corporation also issues specific customised covers to the exporters to meet their individual needs.