1. The seller shall buy an insurance policy for the item sold from a reputable insurer covering the risks of transport and he shall assume all the costs and expenses required thereof. 2. The insurance policy shall be based on a commercial paper and in accordance with the conditions of prevailing practice, provided that the insurance sum shall not be less than the price mentioned in the sale contract. 3. The seller shall be bound only to insure against the normal risks of transport and he shall not be required to insure against additional risks and the risks of war except where the same is required by the buyer. 4. The seller shall not bear any liability towards the buyer for the inability of the insurer to pay the insurance sum, if he has bought the insurance policy for the item sold from a reputable insurance company.
Interpretation and application must be checked against the official text and current version.