What is CIP?
CIP – Carriage and Insurance Paid to (named place of destination)
This term is almost identical to CPT except the seller is required to purchase insurance for goods while in transit. CIP requires the seller to ensure the goods at 110% of the sale contract value under at least the minimum cover of the requires the seller to insure the goods for 110% of their value under at least the minimum cover of the Institute Cargo Clauses of the Institute of London Underwriters (Institute Cargo Clauses (C)). The policy must be in the same currency as the contract of sale of goods. The seller must also turn over documents necessary to obtain the goods from the carrier or to file a claim against the insurer.
CIP can be used for all modes of transport, whereas the Incoterm CIF can only be used for non-containerized ocean shipments.