Article: Study of Marine Cargo Insurance under the Incoterms 2020 CIP Term

Incoterms are international trade rules established by the International Chamber of Commerce (ICC) to standardize practices and reduce complexities in both domestic and international trade. They define responsibilities, costs, and risks in areas such as transportation, insurance, and customs clearances between buyers and sellers through 11 terms. The Incoterms framework allows parties to adapt the rules to their agreements, thereby harmonizing trade customs. These rules play a crucial role in international goods sales contracts and the pricing of goods. To mitigate the risks associated with long-distance transportation in international trade, marine cargo insurance is frequently utilized. Incoterms CIF (‘Cost, Insurance, and Freight’) and CIP (‘Carriage and Insurance Paid To’) specify obligations related to insurance coverage and premiums between buyers and sellers. The rules have evolved, with the most recent version being Incoterms 2020. However, the revised insurance provisions in Incoterms 2020 CIP have raised unforeseen issues. This study aims to clarify these issues and propose possible solutions. Incoterms 2020, CIF, CIP, International Trade Insurance, ICC2009