CIF – Cost, Insurance and Freight
What does Cost, Insurance and Freight mean?
Cost, Insurance and Freight means the seller will deliver the goods on board the vessel. When the goods are on board the ship, the possibility of loss or damage to the goods passes to the buyer. The seller must enter into the carriage contract and bear the costs and freight necessary to carry the goods to the destination port named by the buyer.
Furthermore, the seller must take out transport insurance at his own cost which at least corresponds to the minimum cover under Clauses (C) of the Cargo Clauses of the Institute (LMA / IUA) or similar clauses. If the buyer wants the insurance cover to be higher, he must expressly negotiate with the seller or carry out additional insurance himself.