INSURANCE IN
INTERNATIONAL TRADE
GROUP 3
CONTENT
I. DEFINITION
II. SELLERS’ OBLIGATIONS
III. DIFFERENCES BETWEEN INSURANCE
POLICY AND INSURANCE CERTIFICATE
CIF (Cost, Insurance, Freight)
- The sellers delivers when the goods pass the
ship’s rail at the port of shipment
-
Bearing the costs and freight necessary
-
But the risk of loss or damage to the goods
as well as the costs due to events occurring after
delivery are transferred from the seller to the
buyer.
Linh Thùy
DEFINITION
Linh Thùy
DEFINITION
Insurance
-
A form of risk management primarily used
to hedge against the risk of uncertain loss.
-
The equitable transfer of the risk of a loss, from one
entity to another, in
exchange for payment.
Linh Thùy

When required by the buyer, the seller shall
provide at the buyer's expense war,
strikes, riots and civil commotion risk
insurances if procurable.
Hoang Uyen
Insurance Policy vs.
Insurance Certificate
Quynh Nhu
1/ NATURE
Quynh Nhu
Insurance Policy
(IP)
IP is a contract between
the insurer and the
insured
Determines the claims
which the insurer is legally
required to pay
Insurance Certificate (IC)
IC certifies that an
insurance policy has been
bought
In marine insurance, IC
serves to assure the
insurance is in effect for the
goods in transit
Quynh Nhu
Open Policy
Blanket policy/ floating policy
Issued once by the insurer

general terms like: parties,
validity, name of the insurance…
=> An abstract of the most
important provisions of the
insurance contract
3/ STRUCTURE


Issuing
IP
Is issued once by the insurer
IC
Each IC for each shipment under open policy
Viet Trinh
Legal biding
IP
actionable
IC
Unactionable in many jurisdictions
Nomarly non-negotiable
Can not be assigned to a third paty
Unacceptable under the terms of L/C
Viet Trinh
Substitutability
IP IC
Viet Trinh
Nguyen Thong
Nguyen Thong
Q&A