CPT Inco terms of delivery – who pays insurance?
Under export import trade, who has to arrange insurance under CPT terms? As you know the delivery term CPT means Carriage Paid To a named location. The seller’s risks transfer to buyer immediately upon delivery of goods to the carrier arranged by the Buyer or his nominated agent. The delivery of goods can be either placing the goods for the disposal of the carrier to load or loading goods to the carrier which ever agreed mutually under contract of carriage.
Here the question is about the liability of arranging insurance. Under CPT, who arranges insurance – Exporter or Importer under an International trade? According to Incoterms 2020 designed by ICC, the definition of CPT terms does not talk about Insurance, neither the buyer (importer) nor the seller (exporter) is liable to undertake insurance. So, either buyer or seller may arrange insurance on movement of goods as per their agreed terms and condition in contract of carriage, which is included in their Sale Contract.
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