UCP 600
The letter-of-credit rules, including what an insurance document must show.
Definition
The ICC Uniform Customs and Practice for Documentary Credits, publication 600, the rules banks examine documents under. Article 28 governs the insurance document: it must appear to be issued and signed by an insurance company, underwriter or their agent; a cover note is not acceptable; it must be in the currency of the credit; it must show cover of at least 110% of the CIF or CIP value where the credit says nothing; and the cover must run at least from the place of taking in charge to the place of discharge or final destination named in the credit.
Why it decides money
A discrepant insurance document stops payment on the credit. This is the one place where the exact wording of a certificate has an immediate cash consequence.
Related terms
- Certificate of insurance
- Evidence that a named shipment is covered under a policy.
- Assignment and blank endorsement
- How the right to claim travels with the goods.
- CIF plus 10%
- The customary basis of valuation: cost, insurance, freight and a tenth on top.
More in carriage and documents
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.