Institute Cargo Clause A: This policy covers all the risks of loss or damage to goods. This is the widest cover.

Institute Cargo Clause B: This policy covers risks less than under clause ‘A’.

Institute Cargo Clause C: This policy covers lowest risks.

War and Strikes, Riots and Civil Commotion (SRCC) clause is excluded in all the above policies. These risks can be covered by specifically asking for, paying additional premium.

There are three types of voyage cover available to the Cargo Merchant:
a. The cover can be from the port of loading to the port of discharge- port to port cover
b. Cover can be provided from the port of loading to the warehouse of the importer which may involve inland carriage of goods after discharge.
c. Arrangement can be from the warehouse of the exporter to the warehouse of the importer. In which case inland carriage will be involved on both sides of the trip. This is a combination of both sea and air voyage and the land transit by rail or motor vehicles. The rates of these will vary according to the exposure.

TYPES AND SCOPES OF COVER: CARGO

Since you are more likely to have more request for cargo cover we have to deal in greater detail with the various types of cover available. There are three types of cover available as provided in the three institute clauses A, B and C. Clause ‘A’ has the widest cover replacing the former All Risks cover while clauses B and C replace the F.P.A. and Total Loss only cover . Each scope of cover can be issued to cover the cargo for any form of voyage. These three institute clauses are now considered in turn beginning from the least scope i.e. I.C.C. ‘C’ and progressing to the I.C.C. ‘A’.

INSTITUTE CARGO CLAUSE I.C.C "C"

The Institute Cargo Clause C provides the most limited conditions cover being granted against major casualties in the following way:

Loss of or damage to the subject – matter insured reasonably attributed to:

1. Fire or explosion
2. Vessels or craft being stranded
3. Overturning or derailment of land conveyance
4. Collision or contract of vessels craft or conveyance with any external other than water
5. Discharge of cargo at the port of distress

loss of or damage of subject matter insured caused by:

1. General average sacrifice.
2. Jettisons.

It should be noted that the clause is framed of the named risks less exclusions and the onus of proof is on the assured to show that an insured peril has operated.

EXCLUSIONS

Exclusions under ICC, C cover are the following risks, loss, or damage arising from them:

1. Earthquake volcano or lighting
2. Heavy weather
3. River or lake water entering into ship or container
4. Total loss of the entire package during loading or/discharging
5. Rats and vermin
6. Assailing thieves
7. Theft or pilferage
8. Heavy weather other than washing overboard or sea water ship or container
9. Inherent vice or the nature of the insured goods
10. Ordinary breakage, leakage, wear and tear
11. Attributed to the willful misconducts of the assured
12. War risk, strike risk, (unless war risks and strikes clauses added)
13. Terrorist or person acting from political motive
14. Insolvency or financial default of the ship owner
15. Insufficient and/ or unsuitable packing
16. Deliberate damage or destruction by wrongful act of any person
17. Ordinary loss in weight or volume
18. Use of any nuclear or similar weapon of war
19. Unseaworthiness of the vessels or craft to carry the goods and unfitting of the container / lift van to the good when the assured or their servant are privy thereto at the time of loading therein

INSTITUTE CARGO CLAUSE (ICC) "B"

The institute cargo clause B provide cover against the same peril as ICC-C but also insure against additional name risks so as to provide an assured with a kind of middle of the road,, set of condition the different between B and C clauses is much wider in comparison with the old WA and FPA clauses this being considered to serve the need of the assured more satisfactory. the additional cover can be summarized as the followings:

a. Loss or damages reasonably attributed to to earthquake, volcanic eruption or lighting (clauses 1.1.6)
b. loss or damage caused by washing over loading (clause 1.2.3)
c. loss or damages caused by entry of sea, lake, or rivers water into vessels craft, hold, conveyance, container lift van or place of storage (clause 1.2.3)
d. total loss of any package lost overboard or dropped whilst loading on to or unloading from vessels or craft (clauses 1.3)
e. it is important to mention that loss o the cargo over the sea side in the bad seas can only be the subject of a claim under the B clauses if it is actually washed overboard , not if it  simply breaks lose. Compare with the old A and FPA clause there is a considerable extension of cover provided by the B clauses, in as much as the entry of the sea, lake, or river water into the means of conveyance or the place of storage can result to claims of flood damage which are not previously contemplated.

EXCLUSION

Except the first four of the exclusions listed under the ICC,, C above all other exclusion are equally applicable to ICC, B.

INSTITUTE CARGO CLAUSE (ICC) "A"

The institute cargo clause (A) replaces the previous all risks clause, and therefore cover the goods against all risk or loss, or damages. the following additional risks are covered only under ICC, A:

1. Assailing thieve
2. Theft or pilferage
3. Taking at sea
4. Any risks specifically excluded

It should also be noted that since piracy has ceased to be one of the perils shown in the war clause, cover for this risk can only be obtained under ICC,C and partly ICC, B all other exclusion cut across all the three set of clauses.