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ECGC Claim on goods damaged in transit

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We had exported one container load of granite to our client in USA on FOB basis after getting credit approval from ECGC on them.

Unfortunately the goods got damaged in transit and the client refused payment. Our client did not create any marine insurance for in transit of goods from India to USA.

Here ECGC says the transportation should have been insured, hence refused payment. But we were not responsible for insurance of goods as it was on FOB basis only. For fault of the buyer why we should be penalised.

Is It right? Please suggest a way out...

 

Replies (1)

Dear Shri Nilesh,

ECGC is not liable to pay claim on account of damage to goods while in transit which is covered by General Insurance Companies.  ECGC provides the cover for loss if any on account non payment by the buyer after getting delivery of the goods/ accepting the documetns for making payment on the due date as agreed to with the exporter.

However to avoid any such contingencies for timely consultation from an expert in the field, in case you are reqular exporter, could be contacted on 8130009681 or rakesh.caiib @ gmail.com


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