ECGC assures exporters to provide cost-effective credit insurance cover

Friday, October 1, 2021, 17:50 Hrs  [IST]

ECGC Ltd. (formerly Export Credit Guarantee Corporation) has assured the exporters that it will not increase the insurance premium and will continue to give credit insurance cover at the same cost, despite the disruption caused by Covid-19 pandemic.

Addressing media persons and exporters in Mumbai, the chairman & managing director of ECGC M. Senthilnathan said “all payable claims will be duly paid and we have enough financial resources to meet any increase in claims.”

The media interaction was held in the light of recent decision of the Union Cabinet to infuse Rs. 4,400 crore additional capital and list the corporation on the stock exchange. Senthilnathan said: “The support from the Government is very timely and adequate. This will add to our financial strength not just to make claim payment but also to expand our services.”

“There is an enormous opportunity for a country like India, where international businesses across the globe are looking to seriously diversify supply sources. This is the right time and we are sure, we will be able to expand our services in tune with the demand from expanding exports from India,” Senthilnathan added.

Speaking about the huge opportunities awaiting India’s exports sector, he explained how the V-shaped recovery (post pandemic), as seen in most countries will positively add to the growth of international merchandise exports. “It is predicted that the international merchandise exports will grow at 3.1% per annum till 2030 to reach $26 trillion.”

Senthilnathan elaborated about ECGC’s commitment to expand exports. He expressed ECGC’s desire to partner with like-minded institutions like SIDBI which is trying to identify new companies and start-ups to export indigenous products which are advanced and uses new technologies.

The chairman also spoke about the crucial role played by ECGC during the pandemic to support the exports sector of the country. “When many private insurers had withdrawn from the market (owing to the pandemic), we had expanded our cover during 2020. We are like fire fighters.”

The CMD further said that unlike other countries, in India, Government has created a special purpose vehicle in the form of NEIA (National Export Insurance Account) Scheme to support exports and ensure that the trust is funded on a leverage ratio of 1:20 so that the risk is undertaken by the trust and it is also supported by government funding.