When the B/L Holder Differs from the Insurance Policy Holder

When the B/L Name and Insurance Policy Name Differ

When the B/L name and the marine cargo insurance policy name differ, the first point to confirm is that the B/L and the ocean marine cargo insurance policy are not the same type of document.

The Consignee field on the B/L relates to the right to claim delivery of the cargo, possession and endorsement of the original B/L, bank collateral, and control over the cargo.

On the other hand, the Assured field on the insurance policy concerns the insured party under the insurance contract, insurable interest, and insurance claim rights.

Therefore, the idea that just because "To Order" is used on the B/L, writing "To Order" similarly in the Assured field on the insurance policy is sufficient, is risky.

The important point is not to formally match the B/L name and the insurance policy name. Instead, it is to be able to explain who holds the insurable interest, who suffers the loss, and who can claim insurance proceeds in the event of an incident.

Scope Covered in This Article

This article explains how to organize cases where the B/L name and the insurance policy name differ.

In particular, it covers the following key points.

• Difference between the B/L's Consignee field and the Assured field on the insurance policy
• Differences in the meaning of "To Order" on the B/L and on the insurance policy
• Background for requiring "To Order" or blank endorsement on insurance policies under L/C conditions
• UCP600 Article 28 and bank examination of insurance documents
• Insurance arrangements and the Assured field under CIF, CIP, and FCA terms
• Cases where differing names do not cause issues
• Cases where differing names cause problems
• Points to confirm before and after loss occurrence
• Relationship with triangular trade, Switch B/L, and increased value insurance
• Practical points NVOCCs and freight forwarders should check

The main focus of this article is to discourage handling the "name on the B/L" and the "name on the insurance policy" under the same conceptual approach.

What Do the Names on the B/L and Insurance Policy Indicate?

Although the names on the B/L and on the insurance policy may appear similar, the content they represent is different.

Item	B/L	Insurance Policy
Main Name Fields	Shipper, Consignee, Notify Party	Assured, Claim Payable, Policy Holder, etc.
Main Meaning	Related to cargo transportation, delivery, possession of the original B/L, and transfer of rights	Related to insurance contract, insurable interest, and insurance claim rights
Meaning of "To Order"	As an order B/L, relates to transfer of cargo delivery rights through endorsement and possession	Cannot be used with the same meaning as the B/L; recording "To Order" as-is in Assured can cause ambiguity
Meaning of Endorsement	Relates to transfer of cargo delivery rights and rights on the document	May relate to assignment of insurance policies or clarification of claimants for insurance proceeds
Points for Confirmation in Case of Incident	Who has the authority to take delivery of the cargo	Who holds the insurable interest and can claim insurance proceeds

Although both the B/L Consignee field and the insurance policy Assured field record names, their meanings are not identical.

What is the Assured Field on the Insurance Policy?

In ocean marine cargo insurance, the Assured field generally names the party who holds the insurable interest in the cargo or is the insured party under the insurance contract.

Insurable interest means the economic relationship that suffers loss if damage occurs to the cargo.

Marine cargo insurance is based on the presumption that the insured party has an insurable interest in the cargo.

Therefore, merely recording a party that does not have insurable interest in the Assured field does not necessarily mean they can claim insurance proceeds in the event of a loss.

Regarding the Assured field, it is necessary not to mechanically copy the B/L name, but rather to check the contract terms, risk transfer, insurance arranger, and who bears loss at the time of an accident.

"To Order" Means Different Things on the B/L and Insurance Policy

The Consignee field on a B/L may state "To Order," "To Order of Shipper," or "To Order of Bank."

This relates to circulation of the original B/L, endorsement, bank collateral, and cargo delivery.

For example, with a To Order B/L, possession of the endorsed original effectively transfers the right to claim delivery of the cargo.

In contrast, marine cargo insurance policies are not documents that circulate the right to claim cargo delivery as the B/L does.

Therefore, it is not appropriate to write "To Order" in the Assured field on the insurance policy in the same sense as the B/L Consignee field.

The insurance policy must clearly specify who holds the insurable interest and who can exercise insurance claim rights.

Why Is "To Order" Sometimes Required in the Assured Field?

In practice, L/C conditions sometimes require "To Order" to be stated in the Assured field of the insurance policy.

One background factor is confusion between the "To Order" notation on the B/L and the negotiability or circulation of the insurance policy.

Also, issuing banks or transaction parties may want to hold the insurance policy as a bank document for collateral purposes and may want the ability to transfer insurance claim rights as needed.

As a result, some may misunderstand that writing "To Order" on the insurance policy makes it as negotiable as the B/L, or that it has the same effect as a blank endorsement.

However, writing "To Order" in the Assured field is not the same as having the insurance policy endorsed in blank with a specifically named Assured.

The insurance policy is a document to confirm who holds the insurable interest and who can exercise claim rights. Therefore, the Assured field should not be handled using the same logic as the B/L Consignee field.

UCP600 Article 28 and Insurance Documents

In L/C transactions, insurance documents such as insurance policies or certificates are inspected by banks under the framework of the letter of credit terms and UCP600 Article 28.

In banking practice, insurance documents are checked for issuer, signature, number of originals, date, insured amount, currency, covered risks, and insurance period.

However, banks primarily check whether the documents comply with the letter of credit conditions in form.

The fact that a bank accepts insurance documents does not guarantee who holds the insurable interest or who can actually claim insurance proceeds in the event of a loss.

Hence, fulfilling the insurance document conditions under the L/C and successfully claiming insurance proceeds after a cargo accident should be considered separately.

Difference Between Blank Endorsed Insurance Policy and "To Order" in Assured Field

In L/C conditions, there are cases where a blank endorsement on the insurance policy or insurance certificate is requested.

A blank endorsement is a method of endorsement without specifying a particular assignee. It is sometimes used when circulating the insurance policy through banks or transferring the possibility of an insurance claim to the buyer side.

However, a blank endorsed insurance policy and an insurance policy with the Assured field set to To Order are not the same thing.

Item	Blank Endorsed Insurance Policy	Assured Field To Order
Basic Structure	A specific Assured is stated, and transferability is granted through endorsement	No specific insured party is stated in the Assured field
Practical Purpose	To facilitate transfer of the insurance policy to the bank or buyer	Sometimes confused and mistakenly applied the B/L "To Order" concept to the insurance policy
Verification at Incident	Check endorsements, insurable interest, sales terms, and loss bearer	It tends to be unclear who is the Assured and who holds the insurable interest
Issues	Claim rights are not determined by the form alone; insurable interest must be verified	May be difficult to accept in insurance practice or may require correction

Just because there is a blank endorsement does not mean anyone can freely claim the insurance money.

In insurance claims, insurable interest, loss bearing, sales terms, transfer of the insurance policy, and validity of assignment are all confirmed.

When To Order in Assured Field Is Requested in L/C Conditions

If the L/C conditions require the Assured field of the insurance policy to state To Order, it is important first to check if this is confused with the B/L To Order notation.

For ocean marine cargo insurance, it is basic practice to list a specific person as the insured party in the Assured field.

Therefore, having To Order stated in the Assured field of the insurance policy may be inappropriate in insurance practice.

If the L/C conditions demand such phrasing, consider requesting an L/C Amendment from the issuing bank or trading partner.

For example, it may be preferable to list the actual Shipper, Consignee, or an appropriate insured party on the insurance policy’s Assured field and modify it to a blank endorsement format if necessary.

Responding with L/C Amend or L/G Purchase

If an improper condition such as having To Order in the Assured field is included in the L/C terms, the first step is to consider an L/C Amendment.

Specifically, it is necessary to have the credit terms corrected to allow the Assured field to list the actual Shipper, Consignee, or appropriate insured party under the insurance contract.

If shipping is already underway or if an L/C Amendment cannot be completed in time, consultation with the bank should be conducted to consider discretionary treatments, L/G purchase, or other options regarding purchase feasibility.

In any case, the Assured field on the insurance policy should not be set to To Order in the same manner as the B/L.

Differences in B/L and Insurance Policy Nameholders Can Occur

The fact that the nameholders on the B/L and insurance policy differ is not necessarily an error.

The B/L relates to the delivery of cargo and management of transport documents, while the insurance policy relates to insurable interest and insurance claims.

Therefore, depending on L/C conditions, Incoterms, sales contracts, and insurance contract content, the Consignee on the B/L and the Assured on the insurance policy may not match.

What is important is not the difference in nameholders per se, but the ability to explain who can claim insurance money and who holds the insurable interest at the time of an incident.

Cases Where Different Nameholders Are Less Problematic

Even if the nameholders on the B/L and insurance policy differ, problems are less likely if the transaction structure and insurance claim rights can be explained.

Transaction Scenario	B/L Nameholder	Insurance Policy Nameholder	Rationale
Buyer arranges insurance under FOB terms	Consignee is buyer or bank name	Buyer is Assured	Since the buyer arranges insurance and bears any loss, this is easier to reconcile
Seller arranges insurance under CIF terms	Consignee is buyer or To Order	Seller’s name or issued under seller’s name then endorsed to buyer	Requires explanation of the structure where seller arranges insurance and hands the policy to buyer
Trading company arranges insurance as intermediary	Final buyer or bank name	Trading company or Assured including trading company	Need to explain the range where the trading company holds insurable interest or loss bearing
Triangular trade arrangement where intermediary arranges additional insurance	Consignee after Switch B/L	Intermediary or name including final buyer	Need to clarify original insurance, additional insurance, and price differences
Insurance policy is blank endorsed through bank in L/C settlement	To Order or bank name	Specific Assured name + blank endorsement	Processing with specific named Assured and endorsement is easier than To Order in Assured field

As shown, even if the nameholders differ, as long as sales terms, risk burden, insurance arranger, insurable interest, and insurance policy transfer can be explained, the situation can often be managed in practice.

Cases Where Different Nameholders Cause Problems

Conversely, there are cases where differences between B/L and insurance policy nameholders cause issues.

Problematic Situations	Main Risks	Actions
The Assured field on the insurance policy shows only "To Order"	Unclear who the insured party is	Correct with a specific Assured name and handle endorsement as needed
The Consignee on the B/L differs from the Assured on the insurance policy and the reason cannot be explained	Doubts arise over the right to claim insurance indemnity and insurable interest	Check the sales contract, invoice, Incoterms, and Assignment
The L/C terms specify a name that is inappropriate for insurance practice	Causes discrepancies or insurance practice inconsistencies	Request an L/C amendment; if not in time, consult with the bank about the payment method
In triangular trade, the original insurance and the final sales price do not match	Intermediary profits or added value portions may not be covered	Confirm additional insurance, original insurer, and insured amount
Only the name on the Switch B/L is corrected, but the insurance policy is not reviewed	Conflict arises in commercial flow among B/L, invoice, and insurance policy	Check the Switch B/L, invoice, insurance policy, and certificate of origin as a set

The problem is less about the name difference itself and more about the inability to explain why it differs.

Considerations under CIF Terms

Under CIF terms, it is standard for the seller to arrange cargo insurance.

For example, when exporting from Japan under CIF terms, at the time of applying for insurance, the shipper—usually the exporter—arranges insurance.

Meanwhile, under Incoterms, risk transfers to the buyer when the cargo is loaded onto the vessel.

Therefore, if an incident occurs, depending on the sales terms, timing of risk transfer, and insurance policy content, the consignee importer may make an insurance claim.

Thus, under CIF, in actual logistics practice, the party arranging insurance and the party making an insurance claim when a loss occurs may differ.

To address this misalignment, it is necessary to confirm the insurance policy name, endorsements, assignment, and insurable interest.

Considerations under CIP Terms

Under CIP terms, the seller also arranges cargo insurance, so the Assured field on the insurance policy may be subject to concerns.

CIP terms apply not only to maritime transport but also to air, multimodal, and land transport.

Incoterms 2020 require the seller under CIP to arrange insurance with broader coverage than CIF, making confirmation of insurance conditions more important in some cases.

However, even under CIP, the party arranging insurance, the time risk transfers, the party suffering damage, and the party claiming insurance may not always coincide.

For that reason, it is necessary to check the transport documents such as B/L, Sea Waybill, AWB along with the Assured on the insurance policy, the insurance period, insured amount, and terms.

Considerations under FCA Terms

Under FCA terms, the seller usually has no obligation to arrange cargo insurance.

Therefore, the buyer may arrange cargo insurance themselves and hold an insurance policy or contract in the buyer’s name.

In this case, even if the shipper on the B/L or transport documents is the seller, having the Assured on the insurance policy as the buyer can be natural for the transaction structure.

It is important not to confuse the seller being listed as the shipper on the B/L with the buyer holding insurable interest and arranging insurance.

Since under FCA terms, the name on transport documents and on the insurance policy may differ, confirmation of the timing of risk transfer, insurance start date, and transport segment is necessary.

The Insurance Policy Is Not a Negotiable Document Like a B/L

The B/L is a key document related to cargo delivery claims, and possession of the original and endorsements can affect cargo release.

On the other hand, an ocean marine cargo insurance policy is not a negotiable instrument that transfers delivery claim rights like a B/L.

While endorsements on insurance policies may occur, they do not have the same legal effect as B/L endorsements.

Insurance claims involve insurable interest, sales conditions, risk transfer, insurance policy content, and rights relationships at the time damage occurs.

Therefore, assuming that endorsing the insurance policy can freely transfer the insurance claim rights to parties without insurable interest is risky.

Points to Check Before and After Damage Occurrence

Issues related to names on the B/L and insurance policy require different checks at the insurance arrangement stage and after damage occurs.

Timing of Confirmation	Main Items to Confirm	Purpose of Confirmation	Risks of Neglecting Confirmation
Before Damage Occurs	B/L Shipper, Consignee, Notify Party, To Order notation	Organize the flow of transport and payment documents	There is a risk of mistakenly issuing the insurance policy based on the B/L name
Before Damage Occurs	Assured field, Claim Payable field, and endorsement requirements on the insurance policy	Confirm who is to be insured under the policy	The claimant for insurance proceeds may become unclear in the event of an accident
Before Damage Occurs	Incoterms, sales contract, insurance arrangement obligations	Clarify who arranges insurance and who bears the risk	It may become impossible to explain the relationship between the insurance arranger and the party bearing damage loss
Before Damage Occurs	L/C conditions, blank endorsement, necessity of L/C Amendments	Confirm that documents are acceptable for bank processing	Discrepancies, delayed payment, or consideration of L/G purchase may be necessary
After Damage Occurs	Who held the insurable interest at the time of the accident	Confirm the basis of insurance claim rights	Even if names exist, it may be impossible to explain the grounds for the claim
After Damage Occurs	Risk bearing, ownership, and payment obligations at the time of the accident	Clarify who suffered the economic loss	There may be conflicting understandings among seller, buyer, bank, and insurance company
After Damage Occurs	Location of insurance policy, endorsements, assignment, flow of original documents	Confirm who can proceed with the claim	Delay in initiating insurance claim and submission of required documents may occur
After Damage Occurs	Consistency among B/L, Invoice, Packing List, Survey Report	Verify consistency between incident details and commercial/logistics flow	The insurance company may request additional explanations or supplementary documents

Before damage occurs, the main focus is on whose name the documents will be issued in. After damage occurs, the focus shifts to who actually suffered the loss and who can claim insurance proceeds.

Common Practical Issues

Differences between the B/L name and the insurance policy name are often overlooked under normal circumstances, but can become problematic during L/C settlement, Switch B/L, triangular trade, and cargo damage situations.

Case	Issue	Points to Check	Practical Response
Policy Assured field mistakenly marked "To Order"	The insurance policy was created with the same concept as a B/L "To Order," making the specific insured party unclear	L/C conditions, insurer acceptance, actual party with insurable interest	Correct to a specific Assured name and, if needed, address via blank endorsement or L/C Amendment
No review of insurance policy after Switch B/L	Shipper and Consignee on B/L are changed, but Assured and insured amount on the policy remain based on the old commercial flow	Switch B/L, Invoice, insurance policy, certificate of origin, sales contract	Confirm insurance policy name, insured amount, increased value insurance, and assignment necessity collectively
Assured field "To Order" requested under L/C conditions	Bank document requirements and insurance practice do not align, causing issues with insurer or bank	L/C conditions, UCP600 Article 28, insurer issuance conditions, bank's acceptance policy	Prioritize L/C Amend; if not feasible, consult with bank about discrepancy acceptance or L/G purchase
Damage occurs under CIF terms with insurance policy still in the seller's name	Risk has transferred to buyer, but insurance policy name and originals remain with seller	On Board Date, sales contract, insurance policy endorsements, payment obligations	Coordinate among seller, buyer, bank, and insurer regarding claimant, required documents, endorsements, and assignment procedures
B/L Shipper is seller's name under FOB or FCA terms, but insurance policy is in buyer's name	Assured on insurance policy and Shipper on B/L do not match, appearing inconsistent from a formal perspective	Insurance arranger, point of risk transfer, buyer's insurable interest, transport segment	Prepare documentation explaining that buyer arranges insurance and bears loss
Insured value in triangular trade does not reflect intermediary's profit	Original insurance is based on purchase price; difference with final selling price may not be covered	Original insured amount, final Invoice, increased value insurance, intermediary’s insurable interest	Confirm need for increased value insurance and clarify whose name and price difference to insure
Misunderstanding that a blank endorsement allows anyone to claim	Confusing negotiability of the insurance policy with the right to claim insurance proceeds, neglecting to confirm insurable interest	Endorsement, insurable interest, loss bearer, assignment, sales terms	Do not judge solely by the presence of a blank endorsement; confirm the insurable interest and claim basis at the time of the accident
B/L, Invoice, and insurance policy bear different names among the three parties	The explanation of commercial and logistics flows does not match among shipper, buyer, bank, and insurance company	B/L, Invoice, insurance policy, L/C, sales contract, existence of triangular trade	Differentiate what each document represents and prepare written explanations of the basis for insurance claim rights

Common Misunderstandings

Treating the B/L name and insurance policy name as the same can lead to incorrect decisions during accidents or L/C settlement.

Common Misconceptions	Correct Understanding	Practical Notes
If the B/L is To Order, the Assured on the insurance policy can also be To Order	The meaning of To Order on the B/L and the Assured field on the insurance policy differ	The insurance policy should specify a concrete Assured name and endorsements should be used as needed
Anyone can claim insurance money with a blank endorsement	A blank endorsement alone does not create insurable interest	Confirm insurable interest, loss bearer, and sales terms at the time of the incident
The name on the B/L and the insurance policy must always match	These documents have different natures and may differ depending on the transaction structure	Be prepared to explain the reasons for name differences based on sales terms, risk transfer, and the insurance arranger
If a bank accepts insurance documents under an L/C, there will be no problem claiming insurance money in case of loss	Bank checks focus on documentary compliance with L/C terms, not the final decision on insurance claim rights	Consider bank acceptance and the insurance company’s claims assessment separately
If the buyer’s name is on the insurance policy, the buyer can always claim the insurance money	Even if the buyer’s name is on the policy, it is necessary to confirm insurable interest and loss bearing at the time of the incident	Check risk transfer timing, payment obligations, and insurance coverage period
If a Switch B/L is reissued, the insurance policy can remain unchanged without issue	Even if the B/L name changes with a Switch B/L, consistency with the insurance policy, invoice, and insured amount needs to be confirmed	Verify the Assured on the insurance policy, increased value insurance, and assignment together
The name on the insurance policy can be mechanically copied from the B/L	The insurance policy name should be decided based on insurable interest and insurance claim rights	Confirm sales terms, insurance arranger, and loss bearer when applying for insurance

Issues That Arise in Case of an Incident

When a cargo incident occurs, the insurance company will review the B/L, insurance policy, invoice, packing list, sales contract, Incoterms, incident report, survey report, and other documents.

At this time, if the Shipper or Consignee on the B/L, the Assured on the insurance policy, and the seller and buyer on the invoice do not match, the reasons must be explainable.

Especially important is identifying who had insurable interest at the time of the incident, who suffered the loss, and who holds the insurance claim rights.

Simply matching names as a formality without aligning insurable interest and rights relationships may cause issues when claiming insurance.

Relationship with Triangular Trade and Switch B/L

In transactions using triangular trade or Switch B/L, differences between the B/L name and the insurance policy name tend to cause more problems.

Because the actual shipper, intermediary, and final consignee differ, it is necessary to clarify who arranged the insurance, at what price it was insured, and who can claim the insurance.

When the intermediary holds the margin between purchase and resale prices, issues related to insured value and increased value insurance also arise.

Even if a Switch B/L changes the B/L name, if the insurance policy, invoice, certificate of origin, and sales contracts are not aligned, problems may occur at the time of an incident or L/C settlement.

In triangular trade, it is important not only to hide or align the B/L name, but also to comprehensively check the Assured on the insurance policy, insured amount, increased value insurance, and assignment.

Points NVOCCs and Freight Forwarders Should Be Careful About

NVOCCs and freight forwarders cannot simply prepare documents according to L/C conditions or the shipper’s instructions.

In particular, it is necessary to confirm whether the Consignee on the B/L, the Assured on the insurance policy, the seller and buyer on the invoice, and the Incoterms conditions are consistent.

If requested to list To Order in the Assured section of the insurance policy, explain that the nature of the B/L and insurance policy differ, and request an L/C amendment if necessary.

Also, when a forwarder arranges insurance on behalf of others, they should not decide mechanically who to list as Assured but confirm sales terms, insurance applicant, insurable interest, and claimant in case of loss.

More important than mechanically aligning names on documents is ensuring the arrangement can explain insurance claim rights in the event of an incident.

Decision Checklist

When the names on the B/L and insurance policy differ, it is necessary to separately organize the confirmation points, what to check, potential issues, and how to respond if problems arise.

Check Point	Item to Confirm	Potential Issue	Action if Issue Exists
At B/L Issuance	Who are the Shipper, Consignee, and Notify parties on the B/L?	Unclear flow of cargo delivery and banking documents	Check the original B/L, endorsements, L/C terms, and payment conditions; revise Consignee notation if necessary
When Arranging Insurance	Who is the Assured on the insurance policy?	Unclear insured party and insurance claimants	Verify insurance application details, sales contract, and insurable interest; specify the exact Assured name
When Confirming Commercial Flow	Who are the seller and buyer on the invoice?	Mismatch between B/L, insurance policy, and commercial flow	Check sales contracts, triangular trade arrangements, and presence of Switch B/L; clarify relationships between documents
When Confirming Trade Terms	What are the Incoterms conditions?	Unclear who arranges insurance and who bears risk	Confirm insurance arranger and risk bearer according to terms like CIF, CIP, FOB, FCA
At Time of Accident	Who holds the insurable interest at the time of the accident?	Questions arise over insurance claim rights	Confirm risk transfer timing, ownership, payment obligations, and risk bearer
When Confirming L/C	Does the L/C require "To Order" in the Assured field?	Confusion between B/L and insurance policy	Request L/C amendment and, if necessary, handle with specific Assured name and blank endorsement
When Bank Purchase is Involved	Is a blank endorsement required on the insurance policy?	Affects negotiability and bank's acceptance of the documents	Check L/C terms, bank instructions, and insurer’s practices
In Triangular Transactions	Is there a price difference or markup?	The original insurance may not cover the markup amount	Confirm additional insurance, original insurer, insured amount, and insurable interest of intermediaries
When Documents Are Inconsistent	Is an L/C amendment not obtainable in time?	Leads to discrepancies or non-compliance	Consult with bank about L/G purchase, discrepancy purchase, and client approval
At Insurance Claim Time	Are the original insurance policy, endorsements, and Assignment all in order?	Unclear claimant rights and submission documents	Check required documents with insurer; organize document flow among seller, buyer, and bank

The purpose of these checks is not to forcibly align names, but to ensure that at the time of an accident, the insurance claim rights and insurable interest can be properly explained.

Key Points in Actual Logistics Practice

The B/L named parties and the insurance policy Assured are not the same concept.

The "To Order" notation on a B/L relates to cargo delivery claims and the circulation of the original B/L.

The Assured field on the insurance policy corresponds to insurable interest and insurance claim rights.

Although L/C terms may require blank endorsements on insurance policies, this is separate from requiring "To Order" in the Assured field.

Under trade terms such as CIF, CIP, and FCA, the person arranging insurance, bearing risk, and claiming insurance may differ.

The problem is less about differing names themselves and more about the inability to explain why the names differ.

Summary

When the B/L named parties differ from those on the marine cargo insurance policy, it is important first to distinguish the nature of the B/L from that of the overseas marine cargo insurance policy.

While "To Order" notation is used on B/Ls, the Assured field on insurance policies relates to insurable interest and claim rights; thus, treating "To Order" in the same manner on insurance policies is inappropriate.

Even if L/C terms require blank endorsements on the insurance policy, it is essential to separately review the Assured field details and endorsement requirements.

Under CIF or CIP terms, although the seller arranges insurance, the buyer may be the party to claim insurance after risk transfer. Under FCA terms, even if the seller is the Shipper on the B/L, the buyer may arrange insurance and be the Assured.

Before damages occur, ensure consistency among the B/L, insurance policy, invoice, L/C, and sales contract. After damages occur, verify the insurable interest at the accident time, the risk bearer, and insurance claim rights.

The crucial point is not to formally align names on B/L and insurance policy but to maintain a state where it can be explained who holds insurable interest and who can make an insurance claim at the time of an accident.

If L/C terms require "To Order" in the Assured field of the insurance policy, confirm there is no confusion with the B/L. Respond appropriately with official steps such as L/C amendment, blank endorsement, letter of guarantee purchase, or discrepancy purchase as needed.