TaxTMI 
TaxTMI 
Suppose I am an Importer & I have done deal in LC at sight & incoterm is CIF. Now as per LC the Supplier (Exporter) will receive money against documents. As an Importer I will receive goods later. Now I found that the goods are received in damaged condition. Exporter has got clean B/L so he is saved. Now who will pay me if I have got cover C as per CIF ?? In cover C damages of goods in not cover I suppose. Is cover A required ??
Import protection
04 May 2016 
5 Replies 
1058 Views Asked by
CIF insurance responsibility: importers should require All Risks cover and LC packing conditions to protect against damaged goods.
Under CIF with payment by sight letter of credit, the exporter is paid on presentation of complying documents (including a clean bill of lading) while the importer receives the goods and faces risk of damage unless insurance is adequate. All Risks (Cover A) and warehouse-to-warehouse wording offer the broadest protection; lesser covers may exclude perils or packing-related losses. Banks deal only with documents and do not inspect goods, so importers should require specific LC clauses on insurance scope and export-worthy packing to preserve claimability. (AI Summary)
Under CIF with payment by sight letter of credit, the exporter is paid on presentation of complying documents (including a clean bill of lading) while the importer receives the goods and faces risk of damage unless insurance is adequate. All Risks (Cover A) and warehouse-to-warehouse wording offer the broadest protection; lesser covers may exclude perils or packing-related losses. Banks deal only with documents and do not inspect goods, so importers should require specific LC clauses on insurance scope and export-worthy packing to preserve claimability. (AI Summary)