Under CIF, war risk is yours to ask for
A CIF quote from an Indian plant only has to carry Institute Cargo Clauses (C) cover, so Gulf buyers need to ask for war risk by name.
Many Gulf POs for machined parts say CIF Jebel Ali. It feels safe. The plant books the freight and buys the insurance. But under Incoterms 2020, risk passes to you once the goods are on board in India.
Under CIF, the plant only has to buy minimum cover: Institute Cargo Clauses (C). That's the narrowest standard cover. War and strikes are not in it. They generally have to be requested. If nobody asks, nobody adds them.
That used to be a footnote. It isn't now. Shipping near Hormuz has been disrupted this month.
None of this needs a new contract. It needs one line in the RFQ: "Quote CIF Jebel Ali with Institute War Clauses and Strikes Clauses (Cargo) added, and name the cover and insurer on the quote."
The plant stays the exporter and books what you agreed. Getting the right cover is a matter of being specific. Insurance terms change from deal to deal, so confirm yours with your advisor or forwarder.
If you have a part that needs a plant, tell us what you need made.
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