Logistics-Specific Aspects of Cargo Insurance: Ideals and Realities of International Chamber of Commerce Recommendations

Abstract

As of today, cargo insurance in international merchandise trade is optional unless agreed in the contract. Thus, the paper critically investigates six standard positions regarding cargo insurance stipulated in CIF and CIP bases (INCOTERMS-2020). It has been revealed that in some cases the related recommendations of the International Chamber of Commerce (ICC) do not coincide with the evidence from the field. With the ongoing transformation of international economic relations (incl. economic sanctions regime imposed on Russia by the West), the authors stress that the basic approach to cargo insurance provided by the ICC is still adequate enough. However, it might be subject to some alterations in case of imports to Russia.