Turkish Buyer in Manisa, buys 21,000 kgs of Extra Virgin Olive Oil from a Seller in Italy on CIF Izmir, with a D/A payment term at 30 days maturity after acceptance of the documents. Shipment moves in a 20ft container with a bladder. Shipment arrives Izmir port. As the vessels arrives the port late night, customs broker of Turkish Buyer clears customs next day and arrange a transport to Manisa. Turkish Buyer like the other similar case, require the customs broker to arrange the local transport with full insurance coverage. Truck driver, while in transit moving the goods to Manisa store of Turkish Buyer, notices that the container is leaking oil and stops the truck and the calls his transport company.

Customs broker turns in claim to the insurance company, which insured the local transport from Izmir port to Manisa. Surveyor of the insurance company checks the container and denies coverage as below indicating as Terms of Sale were CIF Izmir.

If an interest insured hereunder is covered by other insurance which attached prior to the coverage provided by this policy, this Assurer shall be liable only for the amount in excess of such prior insurance, the Assured to receive return of premium based on the insured value of such prior insurance at the rates of this Assurer; but in the event of loss or damage from a peril insured against hereunder which is not recoverable under such other prior insurance, this Assurer is to be liable to the full extent of coverage and liability hereunder for which the Assured shall pay the full rates provided elsewhere herein.

The Buyer reaches to the Seller and rejects making payment for the goods indicating that they seems to be damaged due to assigning a poor container and asks the Seller to take back the goods from Turkey.

The Seller rejects the request based on CIF terms.

Questions:

What is the problem?

Do you think the Buyer is right on his claims?

Does this mean that the buyer suffered loss?