ECGC Rajkot settles largest claim in region

Export Credit Guarantee Corporation (ECGC) of India settled claim of Rs 1.92 crore of Bank of Baroda's Porbandar branch against the bank's loss under the Packing Credit Account of one of their major clients "" Hiravati Group on Friday in Rajkot.

The claim cheque was presented to the Bank of Baroda officials by ECGC on Friday.

Speaking to Business Standard, Manoj Kumar, deputy general manager, ECGC (west) said, "This is the largest claim to be ever settled by the Rajkot branch. For last three years, since its inception, ECGC in Rajkot has paid a total claim of Rs 10.60 crore to the exporters and bankers under its schemes as against the total premium collected valuing to Rs 7.25 crore."

Kumar said, "There have been incidents of large defaults by the overseas buyers and of the consequent failure in the repayment of the export credit to the bankers, particularly in the western region."

ECGC, an export promotion organisation set up by government of India, pioneers in export credit insurance and offers a wide range of credit insurance products to both short term and long term exporters.

Till now, with a paid-up capital of Rs 800 crore and 51 branches spread across the nation, it server exporters and bankers covering commercial and political risks for the business undertaken by them with the overseas market.

ECGC till date has settled claims aggregating to Rs 4,224 crore to the exporters and bankers as against the total premium income of Rs 4,695 crore, Kumar said.

During 2005-2006, ECGC paid out claims worth Rs 358 crore as against the total premium income of Rs 578 crore, he added.