perils which are covered under ICC B 17.
17. Institute Cargo Clauses (A) is the cargo insurance policy type 3.
1. washing overboard (accidently losing the cargo over the side as
contrasted with doing it deliberately)
2. entry of sea, lake or river water to the vessel or place of storage,
however note that this peril does not cover rainwater, sprinkler
water or condensation type damage
3. total loss of a package by falling overboard
4. fire and explosion
5. grounding or stranding of the vessel
6. jettison of the cargo (disposing of the cargo over the side of the
ship deliberately)
7. sinking
8. collision
9. damage to the cargo if it has to be discharged after damage to the
ship
perils which are covered under ICC C
1. fire and explosion
2. grounding or stranding of the vessel
3. jettison of the cargo (disposing of the cargo over the side of the
ship deliberately)
4. sinking
5. collision
6. damage to the cargo if it has to be discharged after damage to the
ship
Differences Between Institute Cargo Clauses (B) and Institute
Cargo Clauses (C):
Only difference between Institute Cargo Clauses (B) and Institute
Cargo Clauses (C) is the additional risks covered under ICC (B) cargo
insurance policies.
Below you can find the risks covered under Institute Cargo Clauses
(B), but not covered under Institute Cargo Clauses (C):
1.Loss of or damage to the subject-matter insured reasonably
attributable to earthquake volcanic eruption or lightning.
2.Loss of or damage to the subject-matter insured caused by entry of
sea lake or river water into vessel craft hold conveyance container or
place of storage.
3.Total loss of any package lost overboard or dropped whilst loading
on to, or unloading from, vessel or craft.
differences A Clauses C?
Institute Cargo Clauses (A):
Institute Cargo Clauses (A) covers maximum risks as a result it is also
known as All Risks cargo insurance policy. Below you can find the
details of the risk coverage of this type of insurance policy.
Insurance Cargo Clauses (A) covers all the risks of loss of or damage
to the goods except following conditions:
Risks that have been caused by following reasons will not be covered
under Insurance Cargo Clauses (A)
All risks cargo insurance policy will not be covering loss or damages
arising from the following reasons:
General Exclusion Clauses
1. Loss damage or expense attributable to wilful misconduct of the
Assured
2. Ordinary leakage, ordinary loss in weight or volume, or ordinary
wear and tear of the subject-matter insured
3. Loss damage or expense caused by insufficiency or unsuitability
of packing or preparation of the subject Loss damage or expense
caused by inherent vice or nature of the subject-matter insured
4. Loss, damage or expense caused by delay, even though the delay
be caused by a risk insured against
5. Loss, damage or expense caused by insolvency or financial
default of the owners, managers, charterers or operators of the
vessel where, at the time of loading of the subject-
6. Loss, damage or expense directly or indirectly caused by or
arising from the use of any weapon or device employing atomic
or nuclear fission and/or fusion or other like reaction or
radioactive force or matter.
Exclusion Clauses Covering Insufficiency of the Vessel or
Containers etc.
1. Loss damage or expense arising from unseaworthiness of vessel
or craft or unfitness of vessel or craft for the safe carriage of the
subject-matter insured, where the Assured are privy to such
unseaworthiness or unfitness, at the time the subject-matter
insured is loaded therein
2. Loss damage or expense arising from unfitness of container or
conveyance for the safe carriage of the subject-matter insured,
where loading therein or thereon is carried out prior to
attachment of this insurance or by the Assured or their
employees and they are privy to such unfitness at the time of
loading.
Exclusion Clauses Covering War related Risks
1.Loss damage or expense caused by war civil war revolution
rebellion insurrection, or civil strife arising therefrom, or any hostile
act by or against a belligerent power.
2.Loss damage or expense caused by capture seizure arrest restraint or
detainment (piracy excepted), and the consequences thereof or any
attempt thereat.
10. Loss damage or expense caused by derelict mines,
torpedoes, bombs or other derelict weapons of war.
Exclusion Clauses Covering Strikes, Riots and Civil Commotions
Risks
11. Loss damage or expense caused by strikers, locked-out
workmen, or persons taking part in labour disturbances,
riots or civil commotions.
12. Loss damage or expense resulting from strikes, lock-
outs, labour disturbances, riots or civil commotions.
Differences Between Institute Cargo Clauses (A) and Institute
Cargo Clauses (C):
13. Institute Cargo Clauses (C) covers very limited risks as a result it
is called as a minimum cover cargo insurance policy.
14. Institute Cargo Clauses (A) covers wide range of risks as a result
it is called as a "All Risks" cargo insurance policy.
15. Insurance premium, which should be paid to the insurance
company in order to get the insurance policy issued, would be
substantially different between these two policy types.
16. Institute Cargo Clauses (C) is the cargo insurance policy type
which is requested by the Incoterms 2010 rules.
on delivery to any other warehouse or place of storage,
which is requested by the issuing banks under letter of credit whether prior to or at the destination named herein, which
transactions. the Assured elect to use either
Q: State the general exclusions under ICC A 4. for storage other than in the ordinary course of transit or
1. In no case shall this insurance cover 5. for allocation or distribution, or
2. loss damage or expense attributable to wilful misconduct of the 6. on the expiry of 60 days after completion of discharge
Assured overside of the goods hereby insured from the oversea
3. ordinary leakage, ordinary loss in weight or volume, or ordinary vessel at the final port of discharge, whichever shall first
wear and tear of the subject-matter insured occur.
4. loss damage or expense caused by insufficiency or unsuitability of 7. If, after discharge overside from the oversea vessel at the
packing or preparation of the subject-matter insured (for the final port of discharge, but prior to termination of this
purpose of this Clause 4.3 "packing" shall be deemed to include insurance, the goods are to be forwarded to a destination
stowage in a container or liftvan but only when such stowage is other than that to which they are insured hereunder, this
carried out prior to attachment of this insurance or by the Assured insurance, whilst remaining subject to termination as
or their servants) provided for above, shall not extend beyond the
5. loss damage or expense caused by inherent vice or nature of the commencement of transit to such other destination.
subject-matter insured 8. This insurance shall remain in force (subject to termination
6. loss damage or expense proximately caused by delay, even though as provided for above and to the provisions of Clause 9
the delay be caused by a risk insured against (except expenses below) during delay beyond the control of the Assured, any
payable under Clause 2 above) deviation, forced discharge, reshipment or transhipment
7. loss damage or expense arising from insolvency or financial and during any variation of the adventure arising from the
default of the owners managers charterers or operators of the exercise of a liberty granted to shipowners or charterers
vessel under the contract of affreightment.
8. loss damage or expense arising from the use of any weapon of war
employing atomic or nuclear fission and/or fusion or other like
reaction or radioactive force or matter.
Key Exclusions
1.There are a number of exclusions which apply to all the standard
ICC A, B and C clauses.
2.Wilful misconduct of the insured - deliberately causing damage
to the cargo
3.Wear and tear or inherent vice - the natural behaviour of cargo
without any external influence (such as cargo ripening or
ferrous metals rusting)
4.Insufficiency of packing - this is a relative concept as the measure
is the appropriate packing for that particular cargo, not a
standard across all cargos
5.Insolvency of the carrier - this is to try and focus cargo interests Q: Briefly discuss two additional areas of cover provided in
minds on the quality of those with whom they do business addition to the perils clause in institute cargo clauses
6.Delay - even if the delay is caused by a peril insured against. This 1). In consideration of an additional premium this insurance is
is because insurers are not interested in covering loss of market extended to cover
7.Unseaworthiness - particularly if the insured was aware or should 1.1 the cost of repairing or replacing
have been aware at the time of loading. The concept of 1.1.1 any boiler which bursts or shaft which breaks
unseaworthiness is not just a ship with holes in her hull but 1.1.2 any defective part which has caused loss or damage to the Vessel
also incompetent crew, or missing radios. covered by Clause
8.Unfitness of a container or other conveyance (truck etc) to carry 6.2.2 of the Institute Time Clauses - Hulls 1/10/83,
the cargo 1.2 loss of or damage to the Vessel caused by any accident or by
9.Malicious damage - this is only in the ICC B and C Clauses negligence, incompetence or error of judgement of any person
10. War - piracy is not included in this exclusion whatsoever.
11. Strikes 2). Except as provided in 1.1.1 and 1.1.2, nothing in these Additional
12. Nuclear Perils Clauses shall allow any claim
Q: What are the exclusion under the institute time clause-hulls for the cost of repairing or replacing any part found to be defective as
1. Wilful misconduct of the Assured a result of a fault or error in design or construction and which has not
2. Loss caused by delays caused loss of or damage to the Vessel.
3. Wear and tear 3). The cover provided in Clause 1 is subject to all other terms,
4. Rats and/or vermin conditions and exclusions contained in this insurance and subject to
5. Injury to machine not proximately caused by maritime the proviso that the loss or damage has not resulted from want of due
peril diligence by the Assured, Owners or Managers. Master Officers Crew
or Pilots not to be considered Owners within the meaning of this
Clause should they hold shares in the Vessel.
Q: Institute Cargo Clauses: Enlightening strikes, while you find
Institute Time Clauses (Hull) what are you looking for? And are sparked with the interests finding
Provides the maximum coverage offered by hull insurance. the widespread clauses of cargo insurance. Is it a group of terms and
Perils Covered clauses of cargo insurance policies which widely used? insurance
1. Perils of the sea company, loss adjuster and so on. ICC is widely used by many
2. Fire & explosion international marine insurance organizations, including the Institute of
3. Violent theft London Underwriters and the American Institute of Marine
4. Piracy Underwriters.Generally, cargo insurance policies set out the perils that
5. Breakdown of accident to nuclear installations etc. the underwriter ready to cover, sometime the cover is so wide
6. Contact with aircraft including many types of risk that the cargo may face during agreed
7. Earthquake, volcanic eruptions or lightning voyage, and that is covered under ICC (A). Otherwise, if the
8. Accidents in loading etc. underwriter will provide cover to only short list of named perils for a
9. Bursting of boilers cheaper premium, we can have ICC (B) and ICC (C) with restricted
10. Breakage of shaft listed risks.The wording of this ICC was developed over years. In
11. Latent of defect 1982, ICC underwent fundamental revision to facilitate the
12. Negligence of masters etc. understanding of the policies for who were not familiar with the
13. Negligence of repairers etc. technical understanding of the marine insurance.
14. Negligence of charterers etc.
15. Barratry In 2009, ICC issued another revision which to some extent in favor of
Q: Write down at least 5 common risks under ICC C & ICC B insureds. Both of those versions are used. The differences between the
1. fire and explosion two versions are not great but the care should be taken while dealing
2. grounding or stranding of the vessel with cargo insurance claims associated with ICC policy.
3. jettison of the cargo (disposing of the cargo over the ICC of All Risk (A):
side of the ship deliberately) The term of “All Risk” is so wide, but it does have limitations, it
4. sinking provides cover to all physical risks (not financial losses) which
5. collision generated from fortuitous causes except what is exempted by the
6. damage to the cargo if it has to be discharged after policy clauses 4 to 7.
damage to the ship ICC named perils policy (B) and (C):
Q: ICC A covers all risk other the specified exclusion-explain They provide cover for short listed perils, when the loss or damage are
Institute Cargo Clauses (A): reasonably attributable to some risks and if it is caused by some other
Institute Cargo Clauses (A) covers maximum risks as a result it is also named risks, the list of insured perils are less in (C) policy.
known as All Risks cargo insurance policy. Below you can find the This is not all the story, you need to review the exclusions, which
details of the risk coverage of this type of insurance policy. always have preference over clauses in any insurance policy.
Insurance Cargo Clauses (A) covers all the risks of loss of or damage Underwriter can simply deprive you from cover, if one of exclusions
to the goods except following conditions: has operated to cause the loss.
Risks that have been caused by following reasons will not be covered Q :What are the risk which can be added to ICC B on payment of
under Insurance Cargo Clauses (A) extra premium
All risks cargo insurance policy will not be covering loss or damages Can be added on payment of extra premium to ICC (B)
arising from the following reasons: a) Theft, pilferage and / or non-delivery.
Q: State when the insurance attached under the Transit Clause in b) Fresh water and rainwater damage.
the institute cargo clause c) Hook and / or oil damage.
Transit Clause d) Heating and sweating.
1. This insurance attaches from the time the goods leave the e) Damage by mud, acid and other extraneous substances.
warehouse or place of storage at the place named herein for f) Breakage.
the commencement of the transit, continues during the g) Leakage.
ordinary course of transit and terminates either h) Busting / tearing of bags
2. on delivery to the Consignees' or other final warehouse or
place of storage at the destination named herein,