INSURANCE

Marine:

Covers the loss or damage of ships, cargo, terminals and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination.

Credit: 

Insurance on debtor’s books and other affiliated services.

Inco Terms:

Ex works (EXW):

A term used to describe the delivery goods to an available designation at their place of business, normally in their factory, offices or warehouse.

Free carrier (FCA):

Pushes the responsibility of delivering the goods to the buyers nominated premises onto the seller, so they have to organise shipping and various export documents.

Carriage paid to (CPT):

Specifying that the seller bears the costs of transporting the goods to the nominated place that the buyer requests. Carriage paid to can be used in any transport mode, and the risk transfers from the seller to the buyer as soon as the goods reach the nominated destination and the carrier takes charge of these.

Carriage and insurance paid to (CIP):

requires the seller to take out maximum insurance cover under institute cargo clause (A) or (Air) or similar, for the buyer’s risk. The seller must give the buyer any insurance document the buyer will need in case it must claim under that insurance.

Delivery at place (DAP):

The seller delivers the goods at the named destination, specified by the buyer, although under the ICC rules, the unloading of the goods is the responsibility of the buyer. The buyer is also required to sort out duties and taxes, as well as clearing the goods through customs.

Free alongside ship (FAS):

Requires the seller to place the goods alongside the vessel nominated by the buyer.

Free onboard (FOB):

The seller has the responsibility to get the cargo loaded on the vessel and then buyer takes over from that point onward talking costs for freight and other associated charges on top of the destination costs, once arrived at the destination. Buyer to arrange.

Cost and freight (CFR): 

Once the cargo is loaded on the vessel, the seller no longer covers insurance of the goods which falls upon the buyer to arrange. 

Cost insurance & freight (CIF):

Seller is obliged to take out the minimum level of insurance cover for the buyer’s risk.