Best Trade Solution

Hi

LC calls for incoterm: CFR

In 46A clause reads as: 3
INSURANCE TO BE COVERED BY APPLICANT.MARINE INSURANCE POLICY
OR CERTIFICATE IN DUPLICATE DATED NOT LATER THAN THE DATE OF
BILL OF LADING FOR CIF VALUE OF GOODS PLUS 110 PERCENT ENDORSED
IN BLANK COVERING INSTITUTE CARGO CLAUSES (A)INSTITUTE WAR
CLAUSEES (CARGO) AND INSTITUTE STRIKE CLAUSES (CARGO) WAREHOUSE
TO WAREHOUSE CLAUSE WITH CLAIMS PAYABLE IN INDIA IRRESPECTIVE OF
PERCENTAGE, INSURANCE POLICY MUST MENTION THE NAME OF CARRYING
VESSEL. INSURANCE TO BE COVERED UPTO APPLICANT FACTORY. IN CASE
OF TRANSHIPMENT, THE SAME HAS TO BE COVERED BY INSURANCE.
INSURANCE SHOULD BE COVERED UPTO IMPORTER GODOWN.

Is the above clause is acceptable.?

Hi Pal,
Field 46 lists the document to be presented and there is a true request for marine insurance certificate, even if to be provide by applicant.
IMHO, this is a condition insert in the l/c application, but concerning the relation between applicant and issuing bank.
The proper document should be : copy of advice sent to Insurance company and other to inform of transport details.

PS: banks must stop the action of inserting people with a low knowledge of other industries involved in trade transactions.

Hi,

Instead of putting this clause here:
in field 46A: l/c asked for shipment advise to be send to the applicant and insurance company
in field 47A: INSURANCE TO BE COVERED BY APPLICANT.

since, insurance covered by the applicant now how beneficiary can present insurance policy/certificate ?

Furthermore, applicant may present insurance policy to the issuing bank as per their facility agreement (if required).

Regards,
Muhammad Saqib Khan