Insurance claims settlement in CIF terms

[Rahul Sonawane]

Dear All,

We are supposed to send one export shipment on CIF terms. Our customer is asking to arrange the insurance having the words mentioned in that the claim shall be payable in the Customers Country.

But Insurance companies has denied to mention this word " claims payable at Srilanka "

Now my question is that.

1) Is it possible ?

2) Once cargo is unloaded at destination port , thereafter it shall be carried to CFS, and after opening at CFS only, one can come to know about the damage of cargo if any. In this situation whether the Insurance policy under CIF terms shall cover the damage ?

3) Who will receive the claim amount from Insurance company , customer or shipper ?

AI Summary

Insurance under CIF terms: seller-arranged transit cover can be payable in buyer's country, subject to insurer agreement and policy terms.
Under CIF (cost, insurance and freight) terms the seller procures and pays for transit insurance to the named destination; insurers can often arrange local payment through branches or agents so claims payable in the buyer's country may be possible with additional charges. Transit insurance under CIF is intended to cover loss or damage during carriage and after unloading into CFS, subject to the policy's insured risks. Insurance cost is borne by the seller, and the party holding the insured interest (typically the buyer after risk passes) is normally the practical recipient of any settlement, subject to insurer procedures.