Generally speaking, the contents of insurance clauses include the insurance amount, the type of insurance, the insurance premium, the insurance documents and the applicable insurance clauses. When writing insurance clauses in quotations and contracts, or negotiating insurance clauses with customers, salesmen should pay attention to distinguishing which party has the insurance liability. In contracts concluded with CFR (Cost and Freight) and CPT (Carriage Paid To) in Group F, Group E and Group C, the insurance clause can be written as “Insurance: to be covered by the buyer”. In contracts concluded with Group D trade terms, the insurance clause can be written as “Insurance: to be covered by the seller.” In a contract concluded on the basis of CIF (Cost Insurance and Freight) or CIP (Carriage and Insurance Paid T), if the mode of transport is ocean transport, the insurance clause may be written as “The seller shall insure XXX at 110% of invoice value against XXX Risk and XXX Risk as per the relevant ocean marine cargo clauses of the People’s Insurance Company of China on X month X day of X year.” It is worth noting that even if the insurance is taken out by the seller, it is considered that the seller is insuring on behalf of the buyer, and the party actually bears the insurance premium.
(III) Writing of commonly used international cargo transportation insurance clauses
Common expressions are as follows.
(1) Please cover us on the goods detailed below
(2) Please hold us covered for the cargo listed on the attached sheet.
(3) Please effect insurance for my account of USD 55000 on my goods against All Risks from Hong Kong to this city and at the lowest premium possible not exceeding 10%
(4) We usually effect insurance against All Risks and War Risk for the invoice value plus 10% for the goods sold on CIF basis.
( 5) We will effect insurance against All Risks, as requested, charging premium and freight to the consignees.
(6) The cargo is to be insured warehouse to warehouse against All Risks.