1. Under the CIF term, exporter is required to arrange cargo insurance. To apply for the insurance , the following documents have to be submitted to an insurance company. – Cargo Insurance Application Form – Letter of Credit – Commercial Invoice – Packing List – Draft Bill of Lading 2. Based on the submitted documents, insurance company decides whether or not to provide the insurance coverage. 3. If insurance company decides to provide the insurance coverage, insurance company issues Cover Note for the to-be-insured consignment as evidence to confirm that the insurance coverage is active. 4. Exporter collects Cover Note from insurance company. 5. Upon a receipt of Bill of Lading, Exporter hands one copy to insurance company 6. Insurance company then issues Insurance Policy. 7. Exporter collects Insurance Policy from insurance company and pays insurance premium. 8. Insurance company receives the payment for insurance premium.
