In foreign trade terminology, Insurance Law does not refer to a specific domestic statute, but rather to the body of legal rules governing international cargo transportation insurance, including the formation of insurance contracts, insurable interest, covered risks, claims and settlements. Foreign trade practitioners need to master the Maritime Code, the Insurance Law, and international practices such as the London Institute Cargo Clauses (ICC). Usage scenario: Under CIF or CIP terms, the seller must arrange cargo insurance and pay the premium, and it is necessary to clarify which country's insurance law and which coverage apply. Notes: Different jurisdictions have different rules on insurable interest, subrogation, and exclusions, which may affect claim outcomes; in letter of credit transactions, insurance documents must comply with UCP600 and the credit terms. Difference from 'insurance clauses': insurance law is the legal framework, while insurance clauses are specific contractual terms; difference from 'insurance policy': the policy is the certificate, while insurance law is the rules. It is advisable to specify the applicable law and arbitration venue in the contract to avoid disputes.
📝 Examples
1. Under a CIF contract, the seller insured against all risks as required by the letter of credit and applied the UK Marine Insurance Act 1906 to ensure the insurance policy would be accepted by the bank. (Note: The seller's insurance obligation and applicable law under CIF terms)
2. When cargo was damaged due to the carrier's negligence, the buyer claimed against the insurer under insurance law, and the insurer then acquired the right of subrogation to recover from the carrier. (Note: Application of the subrogation principle in insurance law in foreign trade claims)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner