Who undertakes insurance under FCA delivery terms?
FCA means Free Carrier at a named place under delivery rules designed by ICC. The named place could be at Seller’s premises, an intermediary location or a port of loading place. Under FCA, the seller’s responsibility on costs and risks ends at the time of placing the goods either at Carrier’s point of loading or by loading to the carrier, as per the contract of carriage agreed between buyer and seller mutually.
Since the FCA terms under Inco Terms 2020 does not state anything about Insurance, the insurance under FCA may be arranged either buyer or seller mutually agreed between them and incorporating such term in contract of carriage which is a part of Sale contract.
So under FCA terms of delivery of goods, neither the buyer nor the seller is responsible to undertake insurance on movement of goods.
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