Who Uses Declaration Under An Open Cover Insurance

[picant]

Hi Pals,

in the past I asked the community about this documen of insurance quoted in UCP but never seen. I found in internet that a declaration was in use, but this declaration normally is written by the insured to the insurance, not later than 5 days from shipment, and the cargo is, in any way, considered covered.
Now, I read in top@doc newsletter by Commerzbank- "The Uniform Customs and Practicefor Documentary Credit" UCP 600 also refers to the so-called "declaration":Hoever , since the latter is quite a rare occurrence in daily business, we do not wish to go into details about it here.-
So we are speaking about a rarity, who uses this particular document?
Your advice very very important.
Ciao

[shahriar]

Dear Antonio,

I have seen few declaration under open cover, though under CFR transactions. Under our law, the premium has to be paid before getting into a LC transactions under CFR arrangement. For some large corporate, this is problematic as it puts additional burden on the logistic department. So instead they collect a open cover for the whole year.

[picant]

Hi Shahriar,

so you are speaking of CFR where the insurance is buyer's care, and a declaration is just an advice to the insurance company
concerning details of the effective shipment, but in this case the declaration is made by the seller and no insurance company
signs this advice.I know that some banks required copy of insurance when issuing an l/C. In Italy no, in terms and conditions of the application it is written than the issuing bank may buy an insurance policy to cover the goods but it is rarely done.
So, I think that the declaration under an open cover is not issued by insurance, except in some part of the World, UCP are covering the whole Globe, and in effect , I am not aware of the documents in use in the trade between Eskimo and Red Indians,
or Nauro and Papua, just to mention a few.
Thank you and Season Greetings-Ciao