As the name suggests, the terms of such an agreement require the seller to pay for the carriage and insurance to deliver the goods at the agreed location which is the pace of shipment and not the destination. Till the time the goods are in the custody of the seller, loss and risk will be shouldered by him. But once the goods are handed over to the person or at the destination, the liability of the buyer begins.
Carriage and Insurance Paid To is one such agreement wherein insurance is mandatory, and the goods are insured for 110% of the contract value.
The seller seeks insurance of the goods with a minimum amount, and in case the buyer wishes to seek additional insurance, he must pay for it. It is advisable to do so because the risk of the buyer would increase if anything happens to the goods upon transfer to shipment.
The 11 types of incoterms 2010 are