ABSTRACT
The seller and buyer, once they have agreed on the specifications, quantity, price and mode of delivery of the goods, have to arrange insurance to cover the hazards likely to be encountered during the transportation of goods from the seller’s country to the buyer’s country. As to who arranges for insurance during transportation will depend on the terms of the contract. As gathered from Chapter 1 on standard trade terms where the goods, for instance, have been sold on cost, insurance, freight (CIF) terms, the seller obtains insurance. Where the sale, for instance, is on free on board (FOB) terms, the buyer is likely to take out insurance if he wishes to protect himself against loss or damage to goods in the course of transportation. Chapter 14 illustrates, using marine insurance, the general principles underlying insurance contracts.
