Insurance Certificate is a document that provides proof that goods in transit are covered under an insurance policy against risks such as damage or loss.
How It Works:
- The exporter or importer purchases insurance.
- Goods are covered during transportation.
- A certificate is issued as proof of coverage.
- It accompanies shipping documents.
- Claims can be made if loss or damage occurs.
Benefits:
- Protects against financial loss
- Ensures secure trade transactions
- Builds confidence between parties
- Supports risk management
Example:
A shipment is insured during sea transport and the insurance certificate is provided along with other documents.