Specific Policies : Contracts for export of capital goods or projects for construction works and for rendering services abroad are insured by ECGC on a case to case basis under specific policies. Special mention may be made of the services policy to protect Indian firms against payment for their services. At the same time, the construction works policy aims to cover all payments that fall due to a contractor under a composite contract for execution of civil engineering works which may involve provision of services as well as supply of materials.
Specific Policy for Supply Contracts: This policy may take any of the following four forms:
i) Specific Shipments (Comprehensive Risks) Policy to cover both commercial and political risks at the post-shipment stage.
ii) Specific Shipments (Political Risks) Policy to cover only political risks at the post shipment stage in cases where the buyer is an overseas Government or payments are guaranteed by a government or by banks, or are made to associates.
iii) Specific Contracts (Comprehensive Risks) Policy.
iv) Specific Contracts (Political Risks) Policy.
Contracts Policy provides cover from the date of contract. Losses that may be sustained by an exporter at the pre-shipment stage due to frustration of contract are covered under this policy of addition to cover risks provided by the Shipments Policy.
Insurance cover for buyers credit and links of credit: Buyers credit is a loan extended by a financial institution, or a consortium of financial institutions to the buyer for financing a particular export contract. In this credit system, a loan is extended to government or financial institutions in the importing country for financing import of specified items from the lending country. ECGC has evolved scheme to protect financial institutions in -India which extend- these types of credit for financing exports from India.