Cargo Insurance

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In the modern rules of Incoterms Conditions of Sale grouped into four categories – from the initial letters of the terms, names: E, D, F, C. The main points of Incoterms focus on the responsibilities of seller and buyer in respect of the costs of shipping, customs clearance, delivery of documents, as well as clarification of the crossing points of the risks of ownership product. Also specifies the cases in which the seller must insure goods against the buyer. On Incoterms rules seller in only two cases have to insure and bear the insurance cost of carriage, ie, the seller acts as the policyholder and the beneficiary will be the buyer, when the cargo is delivered under the CIF (cost insurance and freight – Cost, Insurance and Freight) and CIP (carriage and insurance paid to – freight / carriage and insurance paid to). In accordance with these terms the seller has an obligation to cargo insurance against the buyer. Also stipulates that cargo insurance must be carried out by the insurance company of good repute. If there are no other special agreement, the insurance must be placed on minimum coverage Institute London Underwriters. The seller also has the right to request to make war risk insurance, strikes, riots and civil unrest.

This addition to insurance carried out already by pokupatelyai vopolnyaetsya seller as possible. In relation to the sum insured items Incoterms stipulates that insurance should cover the carriage of goods by a minimum stipulated in the contract of sale price Product plus 10 percent (ie 110%). Currency of insurance must be in the currency of the contract of sale. It should be noted that in all other cases the rules do not stipulate the need for insurance, or rather, indicate that insurance product is no obligation nor the seller nor the buyer. Here, each party to a contract of sale must be guided by common sense and determine the need for insurance with points when there passing of the risk of loss or damage of goods / cargo.

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