Import CIF – Incoterms® – Insurable Rights and Risks

Аннотация

International trade is an indispensable activity for all countries and economies (except for countries those are closing their economies) because it will help countries buy machinery, equipment and raw materials for domestic manufacturers and sell national products to help their country’s development. That is why export becomes the core driving force for each country. Businesses themselves operate not only for national interests but also for their own interests. Increasing revenue and reducing expenses is the goal that businesses aim to create large profits for themselves. Besides, in order to maximize business benefits, businesses always pay attention to minimizing risks and damages that may arise during the transaction process. And insurance becomes one of the effective tools for this goal. However, not all businesses can use insurance as an effective tool to protect firms against risks. If firms do not understand insurance clearly, this will become a risk for themselves. Through the real situation of a business being refused compensation by insurer, this article wants to share information as well as the theoretical basis leading to that refusal, and draw some remarkable lessons as well as noteworthy study for businesses especially importers.