Export Credit Guarantee Corporation of India (ECGC) plans to come out with an insurance cover scheme meant for exporters as a group.
It is also working on a new product that combines post-shipment risk coverage given for bankers and exporters, according to ECGC chairperson Geetha Muralidhar.
“The new insurance cover for exporters as a group sets off the risks faced in export trade. It is meant for exporters within a particular industrial cluster like Tirupur knitwear cluster and for members of export promotion councils. The advantage of the product is that large number of exporters will get covered at one stroke”, she said.
ECGC also gives additional attention to provide risk coverage if the trades were been to countries which were economically and politically significant to India.
Study
The ECGC has now initiated a study to understand the additional facilities that need to be given to the exporters and rationalisation of premium, among others.
“This is as part of the efforts to enable ECGC to enhance its role in provision of export risk cover in the coming years”. Presently, the ECGC’s risk value covered in Tirupur for an annum was more than Rs. 5,000 crore constituting 25 per cent of the exports from Tirupur.
