6A.9
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Protection against Transit Risks under f.o.b., c.& f.,etc. Contracts
In case of exports contracted on f.o.b., c.& f., etc. terms and not covered by irrevocable letter of credit opened by buyers, exporters will be well advised to ensure even before cargoes are shipped that the shipment has been adequately insured against all risks of loss or damage during the entire course of transit and that such insurance cover incorporates sellers interest clause in the relative policy, permitting claims being paid to exporter in India in the event of loss/damage to the shipment before ownership in the goods passes to buyer (See Note under paragraph 15A.2 and also paragraph 15A.3).