All sales contracts are accompanied by insurance. Depending on the terms of the contract, this obligation lies with either the seller or the buyer. If this obligation is not specified, the party who bears the risk of accidental loss of or damage to the goods during transportation must itself be interested in insurance.
In the article of the contract, the parties must provide:
what cargo is subject to insurance; from what risks; which of the parties carries out insurance; in whose favor it is produced.
Usually, the cargo is insured in favor of the buyer or the recipient of the goods at 110% of its value (CIF + 10% price). If the risks are not listed in the contract, then according to international customs, insurance is carried out by the exporter on terms with liability for all risks, but this does not include losses due to intentional actions or negligence, as well as from damage due to internal properties of the goods or military actions.
The terms of the insurance contract should include the obligation of exporters to provide buyers with insurance policies or certificates in the event that the seller’s obligations include insurance of the goods.
Liability under the insurance contract begins from the moment when the goods are taken from the warehouse at the point of departure for transportation and continues throughout the transportation (including transshipment and transshipment) until the goods are delivered to the consignee’s warehouse or other warehouse, but not more than 60 days after the goods are unloaded at the consignee’s point.