According to ECGC's eastern region manager RV Ajwan, who was here recently, ECGC needs to consolidate its position as it has to face stiff competition from private players in the coming years. "With the opening up of the insurance sector, ECGC would have a tough time in the market," he said.

Claiming that the ECGC's activities have improved over the years, Ajwan said the premium income has increased to Rs 296.70 crore in 1998-99 from Rs 164.89 crore in 1994-95. On the other hand, payments towards claims have come down to Rs 121 crore in 1998-99 from Rs 227.50 crore in 1994-95.

Around 50 per cent of the total claims were paid to large exporters, he informed.

Ajwan said that the ECGC is facing problem on exports to Afro-Asian countries because of political turmoil there. The Corporation had already coughed up Rs 400-crore claims for defaults in Nigeria and Tanzania, he said adding that the amount is yet to be recovered from those countries due to forex shortage.

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-- (Reuters)