Insurance Certificate Under a Letter of Credit: What to Verify
The UCP 600 Article 28 checks for an insurance document presented under a Letter of Credit: issuer, date, amount, currency and risks.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
UCP 600 Article 28 sets the rules for insurance documents. The document must be issued and signed by an insurer, underwriter or their agent; it must be dated no later than the shipment date unless it shows cover from that date; it must be in the credit's currency; and, if the credit is silent, cover must be at least 110% of the CIF or CIP value.
| Rule | UCP 600 Article 28 |
|---|---|
| Minimum cover if not stated | 110% of CIF/CIP value (Art. 28(f)(ii)) |
| Date | Not later than shipment, unless cover effective from shipment (Art. 28(e)) |
| Cover notes | Not accepted (Art. 28(c)) |
What to verify
- Issued and signed by an insurer, underwriter or their agent or proxy.
- All originals presented if more than one was issued.
- Currency matches the credit.
- Amount meets the credit or the 110% minimum.
- Risks covered match those required by the credit.
- Cover runs at least from the place of taking in charge or shipment to the place of discharge or final destination.
Common mistakes
- Cover based on the FOB value instead of CIF/CIP.
- Policy dated after the bill of lading on-board date.
- Certificate presented when the credit required a policy.
Worked example (fictional)
A CIF invoice is USD 100,000. With no percentage in the credit, cover must be at least USD 110,000 in USD. A certificate for EUR 110,000 or USD 100,000 would not comply.
Sources
General guidance, not legal advice. Your bank examines documents independently.
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