8.4.1 Drafting Insurance Terms in the Contract起草合同...
In an international transaction,whoever purchases the insurance depends on the Incoterms rule employed.It could be you or the importer.For example,under CIF or CIP,you are obliged to purchase insurance; under DAP,DPU,DDP,it is optional to you but highly suggested; while under EXW,FCA,FAS,FOB,CFR,CPT,it’s optional to the importer,but he/she may also ask you to do it on his/her behalf.
Below is an example of insurance terms in a sales contract when the exporter is obliged to obtain insurance,“Insurance to be effected by the exporter for 110% of the invoice value against the WPA and TPND as per Ocean Marine Cargo Insurance Clause of the People’s Insurance Company of China dated Jan.1 1981.”
When getting insurance is at the exporter or importer’s option,the terms may simply read “insurance by the exporter”or “insurance by the importer”.