International freight transport insurance
Coverage of the risks of loss or damage to goods during their international transport.
International freight transport insurance
Transport insurance covers the risks of loss, damage or delay of goods during their international transport, whatever the mode of transport.
Types of coverage
- All risks (Clause A — ICC): broadest coverage, covering all risks of loss or damage except specific exclusions. Mandatory in CIP since Incoterms 2020.
- FAP except / Clause B (ICC): covers major events (sinking, grounding, fire) and certain additional risks
- FAP / Clause C (ICC): minimum coverage, only major events. Minimum required in CIF.
Who should be insured?
The insurance obligation depends on the Incoterm chosen. In CIF and CIP, the seller takes out the insurance. For other Incoterms, the party who bears the transport risk has an interest in taking out insurance.
Calculation of the premium
The premium is generally calculated on the CIF value increased by 10 to 20% (to cover the expected profit). Rates vary depending on the nature of the goods, the route, the mode of transport and the history of claims.
Loss declaration
In the event of a claim, reservations must be made to the carrier upon delivery, contact the insurer or its damage commissioner and prepare the claim file within the prescribed time limits.