Page 242 - International Marketing

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244 International Marketing BRILLIANT'S

3. Help exporters to develop and diversify their exports.
4. Provide risk cover to the exporters against the risks associated
in the world market viz. political risk and commercial risk.
5. Provide other essential services which are not provided by other
Commercial Insurance Companies.
6. Provides a range of credit risk insurance to exporters against
loss of goods and services.
7. Offers guarantee to banks and financial institutions to enable
exporter obtain better facilities from them.
8. Provides overseas investment insurance to Indian companies
investing in joint ventures abroad in the form of equity or loans.
9. Provides guidance in export related activities.
10. Offers insurance protection to exporters against payments risks.
11. Makes information available on different countries with its credit
ratings.
12. Assists exporters in recovering bad debts.
Covers Issued by ECGC
The covers issued by ECGC can be divided broadly into four groups:
1. Standard Policies: Issued to exporters to protect them against
payment risks involved in exports on short-term credit.
2. Specific Policies: Designed to protect Indian firms against pay-
ment risk involved in (i) Exports on deferred terms of payment (ii) Service
rendered to foreign parties and (iii) Construction works and turnkey projects
undertaken abroad.
3. Financial Guarantees: Issued to banks in India to protect them
from risk of loss involved in their extending financial support to exporters
at pre-shipment and post-shipment stages.
4. Special Schemes: Such as Transfer Guarantee meant to pro-
tect banks which add confirmation to letters of credit opened by foreign
banks, Insurance cover for Buyer's credit, etc.
(A) Standard Policies
ECGC has designed 4 types of standard policies to provide cover for
shipments made on short term credit:
1. Shipments (Comprehensive risks) Policy - It covers both political
and commercial risks from the date of shipment
2. Shipments (Political risks) Policy - It covers only political risks
from the date of shipment