Final answer:
The INCOTERM where the buyer is responsible for insurance after the goods are on board the vessel until final delivery is CFR (Cost and Freight).
Step-by-step explanation:
The INCOTERM where insurance is the responsibility of the buyer once the goods are on board the vessel until final delivery is CFR (Cost and Freight). Under CFR, the seller is responsible for the cost and freight to bring the goods to the port of destination.
However, the risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer when the goods pass the ship's rail at the port of shipment.
Thus, it is the buyer's responsibility to insure the goods from that point onwards. In contrast, the DDP (Delivered Duty Paid) term means the seller assumes all responsibilities and costs until the goods are delivered to the buyer, including insurance.
The FAS (Free Alongside Ship) term requires that the buyer arranges for the insurance and transport from alongside the ship. Lastly, under the CPT (Carriage Paid To) term, the seller pays for the carriage, but the buyer takes on all risks once the goods have been handed over to the first carrier.