Carriage and Insurance Paid To (CIP) (agreed place of destination). The seller delivers the goods to the carrier at an agreed place of delivery and pays for transport and insurance to the named destination. The risk is transferred at the place of delivery, whereas seller pays for transport and insurance to the destination.The difference with CPT is that the seller is obliged to take out insurance to protect the interest of the buyer. However take into account that there is no description on what kind of insurance this needs to be. Often this insurance is not a complete insurance to cover full cargo loss, but in stead likely to be limited liability. It's always recommended that the buyer makes sure the goods are insured correctly.
