ECGC cuts exports premium by 20-40% to developing nations
By Our Economy Bureau | 05 Apr 2003
The corporation has also introduced two new polices, a turnover-based policy and a buyer-wise policy.
ECGC chairman and managing director P M A Hakeem says the corporation will also introduce a set of new products exclusively to cover exports of services. "Exporters to Africa, Latin America and West Europe countries can now get ECGC cover at a lower premium."
He says an important aspect of the new rate structure is that exports made under ''open delivery'' (delivery of goods to buyers before documents are received) will now be treated on par with exports under ''delivery against acceptance.''
Under the new turnover-based policy, exporters paying premium of not less than Rs 10 lakh per annum can get additional discount in premium over and above the non-claim bonus plus additional incentives on incremental exports. Besides, the policy also offers easy procedure for payment of premium as wells as submission of shipment information.
The buyer-wise policy allows exporters to obtain credit insurance for all their exports to a buyer for a definite period. With this, exporters will have the flexibility to seek "protection from credit risk in respect of all shipments to all their buyers or all their shipments to some of their buyers or for some of their shipments to some of their buyers," says Hakeem.
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