ECGC plans to enter domestic credit insurance market
Staff Reporter
TIRUPUR: A.V. Muralidharan, chairman and managing director of the Export Credit Guarantee Corporation (ECGC) has said that the corporation was awaiting Government approval to enter the domestic credit insurance market.
He was here to participate in the Golden Jubilee celebrations of the corporation.
He said that there was a vast potential for credit insurance in the country as the Gross Domestic Product was increasing.
Mr. Muralidharan said that the premium would be reduced by up to 10 per cent to help the exporting community, which was facing discomfort following rupee appreciation. It would come into force from August. Setting a target of Rs.750 crore this fiscal against the Rs.617 crore in
the previous year as premium earning, Mr. Muralidharan said that the devaluation of the U.S. dollar was likely to affect the growth. Last year the corporation had taken the coverage of Rs. 4,00,000 crore worth of exports to 195 countries. A total of 14,500 active exporters were covered.
He said that the product insurance coverage by the corporation was much wider than private players. Besides offering customised packages, the corporation has increased the commissionto brokers. It has appointe general insurance agents in the credit insurance sector.
In Tirupur, the corporation had covered Rs. 2,075 crore-worth products from 815 exporters last year with a premium revenue of Rs. 21.5 crore. This year, more number of exporters and products were covered with a target of Rs. 27 crore as premium revenue.
Mr. Muralidharan said that the corporationhad strengthened the country’s exports by covering risk of export credit and it now had 13,000 policyholders.
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