Import L/C Application (continued)

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Question from G.D.:
I enjoyed TO's comments but remain confused. The LC was on CFR basis. So where is the question of presenting an insurance policy arise? With regard to B/L, it is a discrepancy as it is before LC date.
G. D.
Vice President
Head of Loan & Trade Operations
B.S.C
P.O. Box ####, Manama
Kingdom of Bahrain

Response from T.O. Lee:
Dear G.,
My principle of joining L/C View is that I do not wish to dominate all issues. I only deal with those issues that I am interested in or known for, like transport and cargo insurance. So I leave this obvious point for others to contribute comment. The other "selfish" reason is that I have limited time for this. When I joined the L/C View I had already told Ravi about this principle and maybe also to his successor Kim (Kim, please confirm this as I am not sure whether I have told you the same thing, that I should have done).
By saying that the L/C is stupid, it should imply or include the rather obvious fact that on CFR term the issuing bank should not have called for any insurance document. And that the insurance document should not be examined for compliance in the first place. I do understand that brevity may create confusions. Sorry about this.
I am interested in sending out my message particularly on the effective date of an insurance document and my emotional comments on the "smart fool" clause to dictate the issuing date of any document.
Hope now all of you will understand my principle and remove any confusions in my future responses. My future opinions may be only focusing on part of the issues in the query but not all. But that does not mean for those issues that I remain silent, I intend to endorse it or to refuse it.
Best regards,
T. O.

This document is the 2nd episode of "Import L/C Application".

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