CAG report points out poor ECGC practices

Poor underwriting practices of the countrys largest credit insurer,Export Credit Guarantee Corporation of India ECGC,have led to losses of more than Rs 16.13 crore,cites an audit report by the Comptroller Auditor General CAG of India.

ECGC offers 31 types of guarantees and policy products. The report covered three high products that constituted 63.43 per cent of the premium income and 83.40 per cent of claims during 2007-08. ECGC did not insist on proper verification of the creditworthiness of the foreign buyers by banks where exporters happened to be non-policyholders, it said.