CIP – Named Point of Destination
“Carriage and insurance paid to …” means that the seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the in- surance premium. The buyer should note that under CIP term the seller is only required to obtain insurance on minimum coverage. It is advisable that buyer includes in the solicitation document and in the contract, a provision for additional coverage at seller’s expense, (i.e. Institute Cargo Clauses A). The CIP term requires the seller to clear the goods for export. This term may be used for any mode of transport including multimodal transport.