Pays claim of Rs 80.36 lakhs
The ECGC Ltd. branch of Visakhapatnam has paid a Claim for Rs.80.36 lakhs to a Rice Exporter in Kakinada for a rice shipment made to a West African Buyer in Benin.
The company M/s. Manasa Quality Entp Pvt Ltd. had exported rice to the buyer who failed to make the payment to the exporter. Luckily the exporter had taken insurance on the export shipment which came in handy.
‘ECGC covers the Non payment risks for Indian exporters from the foreign buyers for the goods / services exported to them’ informed Mr J. Sudhakar branch manager of the ECGC Vizag branch.
He further added that the credit risks covered by ECGC helps the Indian Exporters to have exports deals with foreign buyers without a fear for non payment risks.
Mr Sudhakar strongly stressed on the need for exporters to take insurance on their shipments to save them from any unforeseen events. ‘Every exporter has confidence that his foreign buyer will pay but in case if the buyer doesn’t pay, the exporter is exposed to a huge loss of business and goes bankrupt. Therefore an exporter who has coverage from ECGC can expand his exports business by focusing on his exports while ECGC covers his credit risk’ said Mr Sudhakar.
The branch manager further informed that it has been proposed by Govt of India to infuse equity in ECGC over five years to boost export insurance cover by Rs.88,000 Crore.