Yea it's true that we get insurance of 110% because in most of the cases it's the importer who asks for a claim from insurance because when goods are damaged in transit, its the importer who has to bare a loss.
Under all 3 widely used terms FOB / CFR / CIF also read this: http://exportimport.guru/article/single/buyers-always-ask-for-fob-cfr-cif-price-for-our-products
the liability of exporter will end when he safely load the goods into a vessel
Chart For Exporter
| Incoterms |
Risk Factor |
Cost Factor |
| FOB |
upto loading into vessel |
upto loading into vessel |
| CFR |
upto loading into vessel |
upto buyers port |
| CIF |
upto loading into vessel |
upto buyers port + Insurance |
Chart for Importer
| Incoterms |
Risk Factor |
Cost Factor |
| FOB |
port to port |
port to port freight + Ins + import clearing |
| CFR |
port to port |
Insurance + import clearing |
| CIF |
port to port |
Import clearing |
So from above, one can easily say that exporter will buy marine insurance in CIF terms only, else importer will buy from his country in FOB or CFR for his safty.
In most cases, importer visits his bank in DP / LC payment terms & pays to bank and collect the documents, then can clear the goods once he has original docs collected from bank including original BL.
Also read : http://exportimport.guru/article/single/payment-terms
Now after clearing importer will get to know that goods are broken or damaged in transit, he will ask insurance company from claim, now if insurance company gives them only 100% then also importer will occur loss because he might have paid CHA cost for clearing, local freight cost from port to factory, etc. so insurance company gives them 10% more i.e 110% so that importer does not occur loss.
Q. Do insurance company also pay loss of import duty paid by the importer at the time of customs clearance for import?
A, No, marine insurance company will never pay for import duty, import duty refund would be available from custom itself if they are informed within 6 months of import, so no worries in it.
Q. where we need to approach to buy marine insurance?
A. One can approach CHA or Insurance Company like GIC, Tata AIG, ICICI Marine Insurence, etc. for more help in it.
Q. Is it true that every times its the importer who needs to get a claim ?
A. In most of the cases importer gets claim but in acctual claim would be provided only to those who has original BL, i.e if importer does not pay for BL and exporter has it in his hand then exporter will get a claim, & if importer pays and collects the BL + Docs from bank then importer will get caim.
In short and simple language marine insurance claim would be provided only to those who are original BL (Title Of Goods) / (Owner of Goods)