This term is the same as CPT with the exception that the seller also has to procure insurance against the buyer’s
risk of loss or damage to the goods during the carriage. This term may be used for any mode of transportation [1]
“Carriage and Insurance Paid to” means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.
‘The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIP the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.”[2]
Reference
[1]
[2] https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-rules-2010/
