The Importance of Defining the Level of Cargo Insurance Coverage in

International Contracts under Incoterms 2000

Roberto Bergami*

Roberto Bergami examines the insurance requirements on cargo in transit in ‘The Importance of Defining the Level of Cargo Insurance Coverage in International Contract under Incoterms 2000’. Under Incoterms 2000 contracts, only two terms require the seller to provide the buyer with evidence of insurance by way of a policy or certificate for the consignment in question. Although three different levels of insurance exist for carriage of goods by sea, Incoterms only stipulate the minimum requirements. This paper briefly examines the changes to cargo insurance since 1980 and comments on the various levels of insurance protection available today. Specific reference is made to the onus placed on the buyer to ensure insurance protection provided is adequate for the needs of particular consignments.

*   Lecturer in Practice of International Trade, School of Applied Economics, Faculty of Business and Law, Victoria University, Melbourne, Australia.