Page 16 - Plastics News Issue May 2025

AIPMA AT WORK

The first expert speaker, Mr. Pramod Bhuvan, presented an in-depth overview of the broader risk land-
scape faced by manufacturers. He outlined multiple risk areas ranging from stoppage of production,
factory asset loss, goods in transit damage, cyberattacks, and employee health and safety concerns
to one of the most pressing issues: non-payment from buyers. Mr. Bhuvan underlined that while risks
cannot be eliminated, they can be effectively transferred through well-designed insurance products.
He detailed how various policies—from fire and marine cargo insurance to group health, product li-
ability, cyber, and credit insurance—can act as shields against unexpected losses, ensuring business
continuity. His presentation also included a tailored risk matrix for the plastics industry, touching upon
categories such as masterbatches, houseware, flexible packaging, pipes, and stationery, reinforcing
the importance of customized insurance planning.

Following this, Mr. Mukesh Kumar Sinha from ECGC Ltd. took the stage to introduce participants to
the suite of trade credit insurance products designed specifically for exporters. He explained ECGC’s
strong financial position, with a net worth of over ₹11,000 crore and an investment corpus of ₹16,500
crore as of March 2024, ensuring robust claim support and policy reliability. Mr. Sinha elaborated on
ECGC’s Whole-Turnover Policy, which provides coverage of up to 90% for both commercial and politi-
cal risks across all buyers and payment terms. The policy includes incentives such as a no-claim bonus
of 5% per renewal and turnover-based premium discounts up to 20%. For exporters entering new
markets or dealing with single buyers, ECGC offers Single Buyer Exposure Covers with 80% protection
and simplified premium structures. He also highlighted features such as enhanced discretionary limits,
automatic cover for L/C issuing banks ranked globally, and floaters for group entities, making the poli-
cies adaptable to various business models.

16 PLASTICS NEWS May 2025