Dialogue Talking about Marine Cargo Insurance
Situation: The seller (the exporter) has one consignment of cargo tobe transported from Shanghai to London under the sales contract with CIF terms.He is consulting with the freight forwarder about marine cargo insurance.
A-the Exporter B-the FreightForwarder
A: Good day, Mr. B, I have something to consult with you about marinecargo insurance.
B: Good day, Mr. A, Yes, please.
A: Do I need to contract for insurance cover against the buyer's riskof loss of or damage to the goods during the carriage by sea and why?
B: Yes, you need to do so because according to Incoterms 2010, one ofthe seller's obligations is to contract forinsurance cover against the buyer's risk of loss of or damage to the goodsduring the carriage and the buyer has no obligation to the seller to make acontract of insurance.
A: What is the amount insured?
B: If there is no indicationin thecredit of the insurance coverage required, the amount of insurance coveragemust be at least 110% of the CIF or CIP value of the goods.
A: What type of cargo insurance should I procure?
B: It depends on the L/C, if there is no indication in the credit ofthe insurance coverage required, you must obtain cargo insurance complying at least withthe minimum cover provided by Free from Particular Average (FPA)as per Ocean Marine Cargo Clauses(2009)of the PICCProperty and Casualty Company Limited or Clauses(C) ofthe Institute Cargo Clauses.

