As it is known, ECIO's most important function to this date is to insure Greek exporters against commercial and political risks of non payment for short term export credits. Naturally, export credits of both Greek products and services can be insured.

Article 3 of ECIO's Statute Law (1796/88) describes the covered risks as being commercial, political and/or catastrophical. The most important commercial risks of non payment are insolvency or delinquency in relation to the foreign buyer. Important political risks are events such as war, currency bans, revocation of import or export licenses by foreign authorities or other disturbances that prevent the exporter from performing under the supply contract or the buyer from making payment whereas catastrophical risks could be earthquakes, natural disasters, etc.

The insurance procedure is very short and simple. The exporter fills out the insurance application form which can be sent to ECIO, either by Fax (as is for 95% of the cases) or mail (electronic or regular) or have it delivered by the exporter himself. The request is then reviewed by the appropriate department and a recommendation is sent to the Governing Board for approval. ECIO's decision process usually doesn't take more than 5-6 days (the average necessary time for ECIO to collect and evaluate any financial information available for a specific foreign buyer) unless the country of destination is in Eastern Europe, in which case the timeframe is longer. If the application is successful, ECIO notifies the exporter of the "insurance terms" and both parties sign the Insurance Policy.

At this point it is necessary to explain the three basic insurance terms, (1) the percentage of cover for the shipment value of goods, (2) the credit limit for every specific foreign buyer and (3) the premium rate.

1. Percentage of Cover: According to article 5 of ECIO's Statute Law (1796/88) the Organization can cover up to 95% of the insured shipment value. Naturally, the percentage of cover in each case depends upon the foreign buyers' credit rating and the existing political and economic situation in the country of destination. It is for this reason why the percentages of cover differ among commercial and political risks.

2. Credit Limit: The insured exporter can extend a credit limit to the specific foreign buyer up to a maximum amount for the agreed credit period. The credit limit is "revolving" and cannot be extended in the case of an outstanding payment.

3. Premium: The premium is set on a "case-by-case" basis and is calculated as a certain percentage of the shipment value (of the invoice). Basically, the premium depends upon the number of commercial and political risks the exporter wants to be covered against in conjunction with other parameters taken into consideration such as, the kind of product(s) to export, the foreign buyers' credit rating, the terms of payment, the political and economic situation in the country of destination, etc. We should mention here that the exporter, with ECIO's approval, can assign his rights for indemnification against the debtor (rights that are derived from the Insurance Policy) to a bank in a form of collateral, in return for his financing. Of course, these rights can be assigned to a third party, i.e. a businessman, etc.

In the case that a risk occurs, the exporter is obliged to inform ECIO, in writing, of this occurrence, within a period of 20 days. The occurrence can only be proven with official documents. i.e, in the cases of insolvency or delinquency an official document of the court decision or court order should be submitted, respectively.

When the Organization is notified, it will put into effect the procedures for risk verification. When all necessary information is collected and there is no doubt to the extent of the claim and the risk is verified, the Claims and Recoveries Department will send a Recommendation Letter (accompanied by a reference letter from the Legal Affairs Department) to the Governing Board of ECIO. The Governing Board decides on the acceptance or refusal of the claim. In case the decision is in favour of the exporter, he's notified to receive the appropriate indemnification.

The time lag between the risk actually occurring and the indemnification taking place could be in the range of 3 to 6 months, assuming the risk verifiably had occurred. This needed time depends upon the country of destination and thus, directly, on both the exporter's responsibility (to follow the set procedures for claiming indemnification) and ECIO (to verify the occurrence of the risk in short time).

Finally, the procedure for claiming indemnification is described in every detail under the General and Specific Terms Section of the Insurance Policies. The insured exporters must read these terms very thoroughly and comply with them to the fullest.