Buyer Contingency Policy under Marine Insurance?
Buyer Contingency Policy plays a very important when the Seller has taken a restricted cover as per sales contract and it will have better coverage’s. It will be effective on transfer of title of goods as per sales contract. Should the goods be damaged upon arrival to the buyer and the title has transferred, this policy would pay the damage and the buyer’s insurance company would subrogate against the seller’s insurance. In one of the claims where the seller insured the consignment (CIF basis) after 4 days from the date of shipment and claim was arisen. The claim was rejected under seller’s policy but the claim is payable under Buyer’s policy as it includes the Buyer’s contingent Interest/policy.