CIP (Carriage and Insurance Paid To)

CIP (Carriage and Insurance Paid To) is a term in Incoterms. It means that the seller delivers the goods to the carrier, but the seller must pay the freight and insurance to bring the goods to the named place of destination. This term is suitable for any mode of transport, including multimodal transport. Usage scenario: CIP is ideal when the seller wants to bear the freight and insurance costs but does not want to bear the risk of loss or damage to the goods during transit. Points to note: The seller must arrange cargo insurance and pay the insurance premium, with coverage of at least 110% of the contract price, and the insurance must be in the contract currency. Risk transfer point: Risk transfers to the buyer when the goods are handed over to the carrier, but the seller must ensure the goods are insured to the named destination. Difference from CIF: CIF applies only to sea and inland waterway transport, while CIP applies to all modes of transport; CIF requires the seller to insure minimum cover, while under CIP the seller must insure broader cover if requested by the buyer. Difference from CPT: CPT does not include insurance, while CIP includes insurance.