Buyers, Sellers, Import/Export merchants, Buying Agents, Contractors and Banks etc. Marine Cargo Policies cover the interest in the cargo and also extend to cover the interests of any third party who has acquired interest upon transfer of ownership, as determined by the Terms of Sale.
Cargo can be damaged on exposure to a wide variety of risks, including an accident of the vehicle carrying the cargo, damage due to jolts, jerks etc.
Loss or damage due to Inherent Vice , Delay, Insufficiency of packing, loss or damage due to financial default or insolvency of the ship owner etc.
|Type of Contract||Responsibility for Insurance|
|Free on Board (FOB)||The seller is responsible till the goods (F.O.B. Contract) are placed on board the steamer. The buyer is responsible thereafter. He can get the insurance done wherever he likes.|
|Free on Rail (FOR)||The provisions are the same as in above. This is mainly relevant to internal transactions.|
|Cost and Freight (C&F)||Here also, the buyer’s responsibility normally attaches once the goods are placed on board. He has to take care of the insurance from that point onwards.|
|Cost, Insurance & Freight (CIF)||In this case, the seller is responsible for arranging the insurance upto the buyers destination. He includes the premium charge as part of the cost of goods in the sale invoice.|