Cargo Insurance is a must to protect your cargo fully and we are here to help you have the best coverage, at the best rates and from the best insurance companies.
Here’s below a brief of the different cargo insurance contracts (or Clauses) you can chose from.
All these are standard Clauses that are used worldwide. They are issued and reviewed jointly by the Lloyds Market Association (LMA) and the International underwriting Association of London (IUA).
1- “Institute Cargo Clauses A”
This is also known as the Cargo All Risks Insurance.
It covers “… all risks of loss of or damage to the cargo insured except as excluded by the policy.” So practically what is not expressly excluded (list below) is covered under this insurance, whether it is a total or a partial loss, whether it is damage or theft, water/rain/sea water damage …
Exclusions for ICC-A
- Inherent vice or nature of the subject matter insured
- Willful misconduct of the assured
- War, Strikes, riots and civil commotions, Terrorism
- Use of any atomic or nuclear weapon
- Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear
- Insufficiency or unsuitability of packing
2- “Institute Cargo Clauses C”
This is also known as “Cargo Total Loss Insurance”.
The insurance covers, except those risks and perils excluded, the loss of or damage to the cargo insured, attributable imitatively to the following perils:
- Fire or explosion
- Vessel or craft being stranded, grounded, sunk or capsized
- Overturning or derailment of land conveyance
- Collision or contact of vessel, craft or conveyance with any external object other than water
- Discharge of cargo at a port of distress
- General Average
Exclusions for ICC-C
The main exclusions are the same then the ones applicable to the ICC-A.
It also excludes Theft and Water Damage are excluded from this cover.
- The ICC-B is the same than the ICC-C but adds the water damage to the cover.
- War Cover (Whether “on Land”, “on Sea” or “on Air”) can be subscribed on a case by case basis.
- The coverage under all the ICC is from Warehouse to Warehouse.
- A Refrigerating Clause can be added to frozen cargo.
- Clause A can only be issued for brand new cargo. Used cargo can only be covered under an “ICC- C” which is just a Total Loss cover.
- The ICC-A policy that covers cargo by Land is called “Land Transit All Risks Clause” and the one covering cargo by Air is the “ICC-A (AIR)”.
4- Premium Rates
Usually, the premium rate charged on the Cargo Insurance depends on several factors:
- The routing
- The packaging
- The commodity
- The transportation means (Air, Sea or Land or multiple)
- Value of the cargo
5- Table of Risks covered and Exclusions for all Clauses