1. A presentation on
COMPARITIVE STUDY OF ecgc
AND ITS COMPETITORS
& SWOT ANALYSIS

2. Introduction:-
In an export trade, exporters needs the finance
at different stages. The finance is required for
processing, manufacturing, assembling, procuri
ng and packing the goods for export in the pre-
shipment stages & During the intervening period
between the shipment of goods and the receipt
of payment post-shipment credit is required by
the exporters at post shipment stages.

3. Need of export credit insurance:-
The export credit plays a very important role in
the International trade system. In developed and
developing countries, it has been a tool for
pushing exports of manufactured and capital
goods, as well as some specific services. Due to
higher risk in International market, credit
insurance becomes important. Export credit
insurance protects exporters against the risk of
non-payments by the foreign buyers.

4. LIST OF THE MAJOR COMPANIES
PROVIDING EXPORT CREDIT
INSURANCE:-
Public sector:
i.) ECGC
ii.) New India Assurance
iii.) SBI general insurance
 Private sector:
i.) ICICI Lombard
ii.) IFFCO-Tokio

5. INTRODUCTION OF EXPORT CREDIT
GUARANTEE CORPORATION:-
ECGC ( Export Credit Guarantee Corporation) of
India Ltd, was established in July, 1957. It
functions under the administrative control of the
Ministry of Commerce & Industry and
Government of India. It is managed by a
Board of Directors comprising representatives
of the Government, Reserve Bank of India. Its
headquarter is in Mumbai, Maharashtra.

6. Objectives:-
To promote export mainly by
i.) Protecting Exporters against COMMERCIAL &
POLITICAL RISKS in export proceeds
ii.) Protecting Banks against RISK OF DEFAULT in
export credit.
iii.) To facilitate availability of adequate bank finance to
the Indian exporters by providing insurance cover for
banker in the form of guarantee at competitive rate.

7. COMPETITORS OF ECGC:-
In the Indian market the competitors of ECGC are
 PUBLIC SECTOR:-
i.) New India Assurance
ii.) SBI General Insurance
 PRIVATE SECTOR:-
i.) ICICI Lombard
ii.) IFFCO-Tokyo

8. Comparison through different
parameters:-
i.)Risk coverage by companies
ii.)Risk exemptions
iii.)Transactions modes
iv.)Countries coverage
v.)Exporters Reach
vi.)Claims
vii.)Bank loan assistance to exporters
viii.)Premium Calculation

9. 1. RISKS COVERAGE

10. Basis of
difference
ECGC SBI-
GENERAL
ICICI-
Lombard
IFFCO-
TOKIO
New India
Assurance
Restriction
by Govt. COVERED
COVERED COVERED COVERED COVERED
Non-
payment due
to war
COVERED COVERED COVERED COVERED COVERED
Cancellation
of import
license
COVERED COVERED COVERED COVERED COVERED
Delay in
payment
COVERED NOT
COVERED
NOT
COVERED
COVERED COVERED
Diversion of
Voyage
COVERED NOT
COVERED
NOT
COVERED
NOT
COVERED
NOT
COVERED
Natural
disaster
NOT
COVERED
NOT
COVERED
NOT
COVERED
COVERED NOT
COVERED

11. 2.RISK EXCLUSION

12. Basis of
difference
ECGC SBI
General
ICICI-
Lombard
IFFCO-
Tokio
New India
Assurance
Exchange rate
fluctuation
NOT
COVERED
NOT
COVERED
NOT
COVERED
NOT
COVERED
NOT
COVERED
Loss of goods NOT
COVERED
COVERED NOT
COVERED
NOT
COVERED
NOT
COVERED
Trade dispute NOT-
COVERED
NOT
COVERED
NOT
COVERED
NOT
COVERED
NOT
COVERED
Default and
insolvency
COVERED COVERED NOT
COVERED
NOT
COVERED
NOT
COVERED
Delay in
payment
COVERED NOT
COVERED
NOT
COVERED
NOT
COVERED
NOT
COVERED
Non –
payment
NOT
COVERED
NOT
COVERED
NOT
COVERED
NOT
COVERED
NOT
COVERED
Non- COVERED NOT NOT NOT NOT

13. 3.MODES OF PAYMENTS

14. Types of
Payments
ECGC SBI-
General
Insurance
ICICI-
Lombard
IFFCO-
Tokio
New India
Assurance
Letter of
Credit
COVERED COVERED COVERED COVERED COVERED
Document
against
Payment
COVERED NOT-
COVERED
NOT-
COVERED
NOT-
COVERED
NOT-
COVERED
Open
Delivery
COVERED NOT-
COVERED
NOT-
COVERED
NOT-
COVERED
NOT-
COVERED
Document
against
Acceptance
COVERED NOT-
COVERED
NOT-
COVERED
NOT-
COVERED
NOT-
COVERED

15. 4.COUNTRIES COVERAGE

16. ICICI-Lombard SBI-General
Insurance
New India
Assurance
IFFCO-Tokio
Egypt Iran Iceland
--------------
Jordan Cuba Tunisia
--------------
Libya Pakistan
---------------
Yemen Iraq
---------------
Fiji Sudan
---------------
Sudan
----------------

17. 5.COVERAGE

18. COMPANY COVERAGE
ECGC 80%-90 %
New India Assurance 85 %
IFFCO-TOKIO 90 %
ICICI-Lombard 90 %
SBI General insurance N.A

19. 6.PREMIUM CALCULATION

20. ECGC SBI-General
Insurance
ICICI-
Lombard
IFFCO-Tokio New India
Assurance
Country basis Turnover Country basis Country basis Country basis
On the basis of
Term of
Payment
Turnover Re-insurance
quote &
support

21. Bank assistance:-
ECGC provides export credit insurance covers
to the banks and financial institutions to enables
the exporters to obtain better facilities from
them i.e. from banks which is formally known as
guarantee.
No other competitor of the ECGC
provides export credit insurance cover to the
banks.

22. SWOT Analysis:-
SWOT analysis of ECGC is as under :
i.) Strength :-
a.) Maximum country coverage.
b.) Maximum coverage from risk.
ii.) Weakness:-
a.) Communication gap
iii.) Opportunities:-
a.) In the sector of factoring
iv.) Threats:-
a.) Weakness will become threat.