FAQ-Answers

What does Marine Cargo Insurance cover?

The scope of cover is defined by the Institute Cargo Clauses (ICC). There are three forms of cover.
1. Institute Cargo Clause (All Risks) – ICC(A): This is the widest form of marine cargo insurance that covers all insurable risks unless explicitly excluded. Common exclusions include misconduct of the insured, ordinary leakage, unseaworthiness of the vessel, and inherent vice (inherent weakness in ship or cargo container).

2. Institute Cargo Clause (Named Risks, Broad) – ICC(B): This type of insurance covers only risks that are explicitly named. It provides cover for loss or damage of insured cargo attributable to: Fire or explosion Stranding, grounding, sinking, capsizing Overturning/derailment of land conveyance Collision or contact of vessels Discharge of cargo at port of distress Earthquake, volcanic eruption or lightening Loss or damage caused by General average sacrifice Jettison/Dumping of goods Washing overboard Entry of sea water Total loss of package overboard during loading/unloading General Average Both to blame.

3. Institute Cargo Clause (Named Risks, Narrow) – ICC(C): This is the least form of cover on a named perils basis which covers only loss or damage of insured cargo reasonably attributable to: 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 Loss or damage caused by General Average Sacrifice / Jettison / dumping of goods