Income from insurance premium may cross Rs 850 cr: ECGC
State-run Export Credit Guarantee Corporation of India today said its income from insurance premium is expected to jump by over Rs 100 crore this fiscal to Rs 850 crore, as more and more exporters are facing payment defaults.india Updated: Sep 15, 2009 18:43 IST
State-run Export Credit Guarantee Corporation of India (ECGC) on Tuesday said its income from insurance premium is expected to jump by over Rs 100 crore this fiscal to Rs 850 crore, as more and more exporters are facing payment defaults.
"I am confident we will cross Rs 850 crore (in 2009-10)," Export Credit Guarantee Corporation Chairman and Managing Director A V Muralidharan told reporters on the sidelines of FIEO function.
In FY'09, ECGC's income from premium was Rs 745 crore.
ECGC provides a range of credit risk insurance covers to exporters against loss in export of goods and services. It also gives guarantees to banks and financial institutions to enable exporters to obtain better facilities from them.
Exporters have been complaining of payment defaults as buyers in the western markets have been impacted due to the demand slowdown.
The corporation had sold about 14,500 policies in 2008-09 and is expecting a 5 per cent increase in sales this fiscal.
Muralidharan said the US buyers accounted for the bulk of total default claims.
"Highest defaults claims are coming from the US... about 25 per cent of the overall claims are from the US," he said.
He said ECGC had paid Rs 451 crore towards claims in 2008-09 and as per the latest figures it has disbursed Rs 146 crore in the current fiscal.
Providing relief to exporters, the government had extended the insurance cover up to March 2010.