Definition
The seller pays freight and minimum marine insurance to the destination port; risk still passes on loading.
CIF obliges the seller to pay ocean freight to the named port of discharge and to take out marine cargo insurance for the buyer’s benefit. As with CFR, risk passes to the buyer once the goods are on board at origin, so the insurance covers the buyer through the voyage.
The seller’s insurance duty is only minimum cover (Institute Cargo Clauses C) unless more is agreed, so buyers of high-value goods often upgrade. CIF applies to sea transport; CIP is its any-mode equivalent.
Related terms
CFR (Cost and Freight)
The seller pays ocean freight to the destination port, but risk passes to the buyer once goods are on board.
CIP (Carriage and Insurance Paid To)
Like CPT, but the seller also buys all-risks insurance to the named destination for the buyer.
Marine Cargo Insurance
Insurance covering loss of or damage to goods while in transit by sea, air, or land.
Incoterms
ICC-published trade terms (EXW, FOB, CIF, DDP…) that define who pays and bears risk at each step.
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