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ORGANISATION COVERING CREDIT RISK : There are 40 organization providing cover for credit risk, the worldover. They are all member of union International Union of credit and Investment Insurance also popularly known as Bewne Union. In most countries these organization are government controlled through a few of them are privately owned In India we have the Export Credit Guarantee Corporation Of India Limited to cover exports credit risks This is a Government Of India enterprise.
In the very first decade of our Independence, the Government realised the importance of promoting exports. A number of organisations were set up for this purpose. It was felt that one of the serious handicaps faced by Indian exporters is the risk that they might not get pad for the shipments made by them. In fact, it acted as a serious deterrent to our export efforts.
It was in July, 1957 that the Government of India set up the Export Risk Insurance Corporation of India (ERIC) with its Head Office in Bombay. 111 course of time, the ERIC started providing various guarantees to bankers providing export finance. It was therefore decided in 1964 to rename the corporation 'Export Credit and Guarantee Corporation
Limited. To bring the Indian identity into sharper focus, the Corporation's name was once again changed in 1983 to 'Export Credit Guarantee Corporation of India Limited', (ECGC). The ECGC is a company wholly owned by the Government of India. It functions under the administrative control of the Ministry of commerce and is managed by the Board of Directors representing Government, Banking, Insurance, Trade and Industry, etc.
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NEED FOR PROCEDURAL FORMALITIES : Procedural formalities prescribed for claiming various export-incentives need timely and proper compliance on the part of exporters. This alone w
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