ECGC Pre Shipment Cover

What is the percentage of Pre Shipment Cover provided by ECGC? I want answer of this question, so some one suggested me for Frequently Asked Questions of ECGC. So please give me official website of ECGC where I will find Frequently Asked Questions and answer of percentage of Pre Shipment Cover.

I am searching for information about ECGC role in covering export risks for pre shipment but I didnt get any information about it. So do you have any idea from where I can find information about ECGC role in covering export risks for shipment?

[shikha]

I am providing information about ECGC role in covering export risks for shipment for your reference:

ECGC Role in Covering Export Risks for Shipment:
The primary goal of ECGC is to support and strengthen the export promotion drive in India:

By providing a range of credit risk insurance covers to Exporters against loss in exports of goods and services.

Payment for exports are open to risks even at the best of times.

Export credit insurance is designed to protect exporters from the consequences of payment risks, both political and commercial and to enable them, to expand their overseas business without fear of loss.

It functions under the administrative control of Ministry of Commerce and is managed by a board of directors representing Government, Banking, Insurance, Trade and Industry etc.

The covers issued by ECGC should be divided broadly into four groups.

1. Standard policies, issued to exporters, to protect them against payment risks involved in export on short term credit.

2. Specific policies, designed to protect, Indian firms against payment risks involved in :

Exports on deferred terms of payment.

Services rendered to foreign parties.

Constructions works and turn key projects undertaken abroad.

3. Financial guarantees issued to banks in India, to protect them from risks of loss involved in their extending financial support to exporters, at the post shipment as well as pre-shipment stages.

4. Special schemes viz transfer guarantee meant to protect banks which add confirmation to letters of credit opened by Foreign banks. Insurance cover for buyers credit, lines of credit, overseas investment insurance and exchange fluctuation risk insurance.

Standard Policies:
ECGC has designed four types of standard policies to provide cover for shipment made on short term credit.

Shipments (comprehensive) policy-to cover both commercial risk and political risk from the date of shipment.

Shipments (Political risk) - Policy to cover only political risks from the date of shipment.

Contracts (Comprehensive risks) policy, to cover both commercial political risks from the date of contract.

Contracts (Political risk) policy to cover only political risks from the date of contract.

The risks covered under the standard policies are

A. Commercial Risks :
Insolvency of the buyer.
Buyers protracted default to pay for goods accepted by him, and
Buyers failure to accept goods subject to certain conditions

B. Political Risks :
Imposition of restrictions on remittance by the government in the buyers country or any Government action which may block or delay payment to the exporter.
War, revolution or Civil disturbances in the buyers country
New import licensing restricting or cancellation of valid import license in the buyers country.
Cancellation of Export licence or imposition of new Export licensing restrictions in India (under contract policy).
Payment of additional handling transport or insurance charges occasioned by interruption or diversion of voyage which cannot be recovered from the buyer.
Any other cause of loss occurring outside India, not normally insured by commercial insurers and beyond the control of the Exporter and the buyer.

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