ECGC: Your Complete Guide to India Export Credit Insurance

ECGC was established in 1957 to fill the gap that commercial insurers leave in international trade: the risk that foreign buyers default on payment for geopolitical, economic, or commercial reasons. As India exports have grown to USD 437 billion, ECGC has evolved into a comprehensive risk management institution covering exports to 200+ countries.

What ECGC covers: Commercial risks — buyer insolvency, buyer protracted default (failure to pay within 4-6 months of due date), buyer refusal to accept goods (if not attributable to exporter fault). Political risks — import restrictions imposed by the buyer government, war, civil disturbance, transfer risk (buyer pays in local currency but government blocks foreign exchange conversion), cancellation of valid import licence.

Key ECGC products: Standard Policy covers exports on credit terms up to 6 months — ECGC pays 60-90% of net loss after risk events. Premium: 0.10-0.50% of export value depending on buyer country and credit period. Specific Policy covers individual high-value shipments where Standard Policy limit is insufficient. Buyer Exposure Limit: ECGC assesses creditworthiness of individual foreign buyers and issues a credit limit — providing pre-shipment buyer due diligence.

How to structure ECGC cover for India-EU mandates: (1) Apply for ECGC Standard Policy before first shipment; (2) Obtain Buyer Exposure Limit for your EU buyer; (3) Name your bank as loss payee if you have assigned receivables; (4) Register each shipment on ECGC online portal within 30 days of shipment; (5) If buyer defaults, notify ECGC within 30 days and lodge claim with shipping documents, correspondence, and legal notices.