FOB, CIF and other contracts of sale define the time of passing of risk, and thereby insurable interest, from seller to buyer.
A carrier has an insurable interest in goods because of his liability to the goods owner. A shipper has an insurable interest in respect of any freight prepaid but not earned (e. g. if the vessel does not complete the voyage). The insurer of a subject-matter insured has an insurable interest in the risk he has written, allowing him to re-insure and spread the risk.
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