Assignment of Insurance

Assignment of Insurance refers to the act by which the insured transfers its rights under an insurance contract (primarily the right to claim insurance proceeds) to a third party. In international trade, it is commonly seen under CIF or CIP terms, where the seller, after obtaining insurance, endorses the insurance policy to transfer the right of claim to the buyer, so that the buyer can claim directly from the insurer in the event of cargo damage. Use cases include letter of credit settlement, financing arrangements, or resale of goods. Precautions: the assignment requires the insurer's consent or must be done in accordance with the policy terms; after assignment, the original insured loses the right of claim; ensure the assignment procedures are complete (e.g., endorsement, written notice). It differs from 'Assignment of Insurance Interest,' which refers to the transfer of the insurance contract itself and requires the insurer's consent; whereas Assignment of Insurance only involves the right of claim and does not change the contract subject. It also differs from 'Subrogation,' which is the insurer's right to recover from the liable party after paying the claim. Foreign trade practitioners should clarify the scope of assignment and notify promptly to avoid obstacles in claiming.