Documents
Insurance certificate
A document issued by an insurer proving that a specific shipment is covered by cargo insurance.
In four languages
The insurance certificate shows the insured value, the cover, the voyage and the claims agent at destination. Cover is usually defined by the Institute Cargo Clauses: (A) is broad all-risks cover, while (C) is the narrowest standard cover. War and strikes cover are separate additions. The customary insured value is 110% of the CIF or CIP value. Under CIF, the seller must provide at least (C) cover, and under CIP at least (A). Under other Incoterms the buyer decides whether to insure. Example: a Dubai importer buying CIF Jebel Ali receives a certificate showing only (C) cover. Since that does not protect against many common losses, the importer arranges top-up cover, and checks that the policy still applies if the cargo is discharged at Khor Fakkan instead.
Questions
Does CIF include full insurance?
No. CIF only requires minimum Institute Cargo Clauses (C) cover at 110% of the value. Ask for (A) cover in the contract or buy your own policy.
What insured value should I use?
The usual practice is the CIF or CIP value plus 10%, which is also the minimum under CIF and CIP.