Answer
The Institute Cargo Clauses (ICC) are standard marine insurance conditions drafted by the International Underwriting Association of London. They define what assets and risks are covered while cargo is in transit across international seas.
Main Types of ICC Coverage
| Clause Type | Level of Risk Covered | Summary of Key Coverages & Exclusions |
|---|---|---|
| ICC (A) | All Risks (Widest Coverage) | Covers all risks of physical loss or damage to the cargo except specific exclusions (e.g., regular wear and tear, packing defects, war, strikes unless added via special endorsements). |
| ICC (B) | Intermediate/Named Risks | Covers specified risks such as fire/explosion, stranding, sinking, overturning, collision, discharge at a port of distress, earthquake, volcanic eruption, lightning, and washing overboard. |
| ICC (C) | Minimum/Basic Risks | Covers basic major casualties only: fire/explosion, stranding, grounding, sinking, capsizing, collision, discharge of cargo at a port of distress, and general average sacrifice. Does not cover water ingress or washing overboard. |
Standard Exclusions Across All Clauses
Insurance will not payout under any ICC clause if the loss stems from:
Willful misconduct of the assured party.
Ordinary leakage, ordinary loss in weight/volume, or inherent vice of the cargo (e.g., natural decay of fruit).
Inadequacy or unsuitability of packing or preparation of the subject-matter.
Unseaworthiness or unfitness of the vessel, provided the cargo owner was aware of the ship's condition at the time of loading.