Final answer:
Under CIF terms, the exporter must cover insurance and, in case of loss or damage like the ship catching fire, should file a claim with PICC. The buyer can request the exporter lodge this claim, and banks typically cannot refuse payment if all documents were in order before the incident. Depending on the sale contract, the buyer might seek a refund if insurance does not fully cover the loss.
Step-by-step explanation:
When an exporter ships goods to Europe under CIF terms (Cost, Insurance, and Freight), they are responsible for arranging and paying for transportation and insurance to the port of destination. Since the exporter has already shipped the goods and has insurance coverage with PICC (People's Insurance Company of China), all risks including the event of a fire should be covered.
In this case, if the shipping vessel catches fire and the goods are destroyed, the exporter should file an insurance claim with PICC for the lost cargo.
Regarding the buyer or the bank's ability to refuse payment, under CIF terms, and assuming the exporter had provided all necessary documentation including a clean Bill of Lading before the incident happened, the bank should not refuse payment solely due to the loss of goods, as the risk had transferred to the buyer once the goods were onboard the vessel.
However, if the bank is yet to release payment, situations can vary based on specifics in the Letter of Credit and any discrepancies in the transaction.
For the second question, the buyer would have the right to require the exporter to file a claim with PICC since the exporter holds the insurance policy. Should the insurance claim be unsuccessful or not cover the full loss, depending on the terms of the sale and the contract between the buyer and seller, the buyer might be able to seek a refund or other compensation from the exporter.