Who is liable to undertake insurance under FOB terms of delivery?
The liability to arrange insurance by Exporter or Importer under FOB terms?
Under FOB terms of Export Import trade, the exporter undertakes the liability of risks and costs to move the goods from his premises to the port of loading at his country till on board the vessel. The exporter transfers the risks and costs to move the goods to the importer till final destination place required by the importer. Here the question is, who takes care of insurance under FOB terms of delivery? As mentioned in other posts, under Inco Terms rules, if specifically not mentioned about insurance, neither the party is responsible to undertake insurance.
So under FOB terms of delivery of Inco Terms rules, either buyer or seller is not responsible to arrange insurance. Insurance for movement of goods may by arranged as per the contract of carriage under sale agreement si gned by exporter and importer mutually agreed under international trade.
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