400. Terms of insurance policy.

The insurance policy required to be tendered by the seller under a cif contract is one which complies with any terms regarding the policy agreed in the contract of sale1 and which is otherwise current in the particular trade2. The question whether the policy tendered fulfils this requirement is one of fact. In particular, it need not necessarily cover every risk included within the form of the policy scheduled to the Marine Insurance Act 19063. The goods must be covered by the policy to an amount equal to their reasonable value on shipment