The scenario described aligns perfectly with the Incoterm® CIP (Carriage and Insurance Paid to). Under CIP, the seller is responsible for delivering the goods to a carrier they have nominated. The seller must also contract for and pay the cost of carriage to the named destination. Crucially, the seller is also obligated to contract for insurance cover against the buyer's risk of loss or damage during transit. The rule specifies that the seller must obtain, at their own expense, cargo insurance compliant with at least the minimum cover provided by Clauses (C) of the Institute Cargo Clauses, which matches the "minimal insurance cover" mentioned in the question. Risk transfers from the seller to the buyer when the goods are delivered to the first carrier.

A. EXW – Ex Works: The seller's only obligation is to make goods available at their premises; they do not arrange transport or insurance.

B. FCA – Free Carrier: The seller delivers to the carrier but has no obligation to arrange or pay for insurance for the main carriage.

C. CPT – Carriage Paid To: The seller pays for carriage to the destination but has no obligation to arrange or pay for insurance.

1. International Chamber of Commerce (ICC). Incoterms® 2020: ICC rules for the use of domestic and international trade terms. ICC Publication

2019.

CIP (Carriage and Insurance Paid to)

Section A5 (Insurance): "The seller must obtain

at its own cost

cargo insurance... The insurance shall cover the goods from the point of delivery... to at least the named place of destination... The cover shall be for at least the minimum cover provided by the Institute Cargo Clauses (C)..." (p. 67).

CPT (Carriage Paid To)

Section A5 (Insurance): "The seller has no obligation to the buyer to make a contract of insurance." (p. 57). This directly contrasts with the question's requirement.

2. David

P.

& Stewart

R. (2010). International Logistics: The Management of International Trade Operations (3rd ed.). Cengage Learning.

Chapter 4

International Terms of Trade: "Under CIP

the seller is responsible for the cost of transportation and the cost of insurance to the named destination. This is the only other Incoterm rule [besides CIF] that stipulates that the seller must purchase insurance." (p. 114).

3. University of North Carolina

Kenan-Flagler Business School. Global Business Projects: Incoterms® 2020 Rules.

In its summary of CIP

it states: "Seller pays for carriage and insurance to the named destination point

but risk passes when the goods are handed over to the first carrier." This confirms the dual responsibility for cost (carriage and insurance) and the point of risk transfer described in the question.